In the latest development of the ongoing saga of Bitcoin Exchange Traded Funds (ETFs), VanEck, a New York-based investment firm, has revised its application to the Securities and Exchange Commission (SEC) for a spot Bitcoin ETF. The amendment was noted in the filing on Wednesday, October 27. The firm is proposing a unique approach in the industry by using Bitcoin for fund seeding instead of traditional cash-based strategies.
The move comes as part of a broader trend in the industry, where firms like Bitwise Asset Management, Invesco, and Valkyrie are refining their spot Bitcoin ETF applications, despite previous SEC rejections due to market manipulation concerns. The SEC continues to delay decisions on these proposals.
VanEck's Bitcoin Trust aims to mirror Bitcoin's performance through Bitcoin holdings rather than cash. Its shares will be traded on the Cboe BZX Exchange and sold or redeemed in blocks of 50,000 shares known as "Creation Basket," based on the represented Bitcoin amount.
Scott Johnsson, a finance lawyer, highlighted these changes in VanEck's filing, notably the "affirmative addition" of "seeding" with Bitcoin instead of cash. However, he cautioned against drawing too many conclusions from these amendments.
In parallel with its Bitcoin efforts, VanEck also plans to launch Ethereum-styled futures contracts upon SEC approval. These contracts will be part of the firm's Ether Futures ETF, a standardized product with cash-settled futures contracts tradable on the Commodity Futures Trading Commission's (CFTC) regulated platform.
The revision in VanEck's application comes amidst a surge in interest for Bitcoin ETFs that has catapulted Bitcoin's price to new heights. As of Monday, Bitcoin traded at $34,218.7, reflecting a weekly increase of 11.3% and a market cap of $668 billion, with a total circulating supply of 19,528,018 BTC. Bitcoin's trading volume rose by 38.72%, and its value increased by 0.36%.
SEC Chairman Gary Gensler confirmed that multiple Bitcoin ETF applications are currently under review. The industry eagerly awaits the SEC's decision, as the approval of a Bitcoin ETF would mark a significant milestone in the mainstream acceptance of cryptocurrency.
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