VanEck is attempting to create a Bitcoin Strategy exchange-traded fund after failing to do it four years ago.
On August 9, VanEck submitted a registration for a Bitcoin Strategy exchange-traded fund, or ETF, with the Securities and Exchange Commission, or SEC. Unlike the Bitcoin (BTC) and Ether (ETH) ETFs presently under consideration by the federal government, the suggested fund would give access to BTC via Bitcoin futures contracts, pooled investment vehicles, and other exchange-traded items, rather than directly investing in BTC.
The Bitcoin Strategy ETF, according to VanEck, would provide access to cryptocurrency ETFs listed and traded in Canada, such as those from Purpose Investments and Evolve Funds Group. The investments will be made via a Cayman Islands-based company of the asset manager.
Although VanEck submitted a comparable registration for a Bitcoin Strategy ETF in 2017, SEC head Gary Gensler has stated that ETFs based on cryptocurrency futures instead of direct access would be more permissible. After Gensler’s statement, other businesses registered comparable ETFs with the government body; on Aug. 5, investment company Invesco revealed its intention to establish a Bitcoin ETF without direct exposure.
In the United States, the SEC has yet to authorize a Bitcoin ETF. However, VanEck, Valkyrie Digital Assets, Fidelity Investments, and others have proposed their own cryptocurrency ETFs. To postpone concluding a fund, the commission has often prolonged the consideration period or exposed the subject to public opinion.