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VanEck Revises Spot Bitcoin ETF Proposal

VanEck's innovative approach to spot Bitcoin ETFs reflects a growing trend in the cryptocurrency investment landscape.
Published on 2023-10-30

VanEck's Spot Bitcoin ETF Amendment

VanEck, a prominent New York-based investment firm, has made notable changes to its application for a spot Bitcoin Exchange Traded Fund (ETF) with the Securities and Exchange Commission (SEC). This amendment marks a significant shift as VanEck proposes using Bitcoin for fund seeding, rather than following traditional cash-based strategies. This innovative approach aligns with a broader industry trend where companies like Bitwise Asset Management, Invesco, and Valkyrie are refining their applications despite previous SEC rejections due to concerns about market manipulation.

Reimagining Fund Seeding

The VanEck Bitcoin Trust aims to track Bitcoin's performance by holding Bitcoin itself. Its shares will be traded on the Cboe BZX Exchange, with transactions carried out in blocks of 50,000 shares, known as a "Creation Basket." This approach is intended to closely mirror the performance of Bitcoin and offer investors a unique investment vehicle.

Ethereum Futures Contracts

In addition to its Bitcoin endeavors, VanEck is preparing to launch Ethereum futures contracts upon SEC approval. These futures will be part of the firm's Ether Futures ETF, featuring cash-settled contracts on a Commodity Futures Trading Commission (CFTC) regulated platform.

Rising Interest in Bitcoin ETFs

The revision of VanEck's application comes amid heightened interest in Bitcoin ETFs, driving Bitcoin's price to unprecedented levels. As of recent data, Bitcoin has seen a significant price increase, reflecting a robust market cap and rising trading volumes. The SEC's decision on multiple Bitcoin ETF applications is highly anticipated, as approval could signify a major step toward mainstream cryptocurrency acceptance.

Awaiting SEC's Decision

The cryptocurrency industry is keenly watching the SEC's review process, with the potential approval of a Bitcoin ETF poised to reshape the landscape of digital currency investments. The outcome could pave the way for greater acceptance and integration of cryptocurrencies within traditional financial markets.

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