Following the successful launch of a bitcoin exchange-traded product in Europe, Vaneck has now submitted a new proposal for a bitcoin exchange-traded fund (ETF) to the US Securities and Exchange Commission (SEC). Under former chairman Jay Clayton, the SEC never approved a bitcoin ETF. However, Clayton has resigned from his post and changes are likely to come from the incoming Biden government.
First Bitcoin ETF submission after Clayton’s departure
New York-based investment management firm Vaneck filed a registration statement with the U.S. Securities and Exchange Commission (SEC) on Dec. 30 to list and trade the Vaneck Bitcoin Trust. According to the submission, the sale of the fund’s shares will begin “As soon as possible after the commencement of this registration statement.”
The Vaneck Bitcoin Trust (the ‘Trust’) is an exchange traded fund that issues ordinary shares of beneficial interest (the ‘Shares’) that are listed on the Cboe BZX Exchange Inc. traded, ‘is described. “The investment objective of the Trust is to reflect the performance of the Mvis Cryptocompare Bitcoin Benchmark Rate minus the expenses for the Trust’s operations.”
The submission adds that in order to achieve its investment objective:
The Trust will hold bitcoin and value its shares daily based on the reported Mvis Cryptocompare Bitcoin Benchmark Rate.
This rate is calculated based on exchanges that, according to MV Index Solutions GmbH (Mvis), represent the top five bitcoin exchanges, based on the Cryptocompare Exchange Benchmark report. Vaneck Digital Assets is the sponsor of the Trust and Delaware Trust Company is the trustee.
“Subject to liquidation or exceptional circumstances, the Trust does not intend to buy or sell bitcoin directly, although the trustee may order the Bitcoin Keeper to sell bitcoin to pay certain expenses,” the submission continues. “Instead, when the Trust sells or redeems its Shares, it will do so in ‘in kind transactions’ in blocks … at the net asset value of the Trust.”
Vaneck’s director of digital asset strategy, Gabor Gurbacs, tweeted:
Vaneck is a top priority in marketing a physical bitcoin ETF in the US. We are committed to supporting bitcoin-focused innovation and continue to work with regulators and market participants to achieve this goal.
In November, Vaneck launched a bitcoin exchange-traded note (ETN) in Europe. “The ETN is physically supported by bitcoin and listed on Deutsche Böerse Xetra,” Gurbacs explained.
The new Bitcoin ETF submission comes a week after former SEC Chairman Jay Clayton resigned from his post on Dec. 23. Under his leadership, the SEC never approved a bitcoin ETF. President Donald Trump has named Commissioner Elad L. Roisman as acting chairman of the SEC. Meanwhile, Acting Coin Controller Brian Brooks has warned that changes could come from the Biden administration. This may include some measures instituted by the Office of Currency Controller (OCC).
Do you think the SEC will soon approve a bitcoin ETF, now that Clayton is no longer the chairman? Let us know in the comments below.
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