VanEck Bitcoin ETF Postponed for the Last Time to Nov 14th As Futures Get the Lead Role

VanEck is one of the dozen companies awaiting an answer from the SEC on approval of physically-backed Bitcoin ETF and has also filed for a futures-backed Bitcoin ETF, which is raising Grayscale’s hackles.

The US Securities and Exchange Commission (SEC) has, yet again, extended the review process of VanEck’s physically-backed Bitcoin exchange-traded fund (ETF) for the final time.

On Wednesday, the US securities regulator posted an extension notice, saying it is designating a longer period, additional 60 days, to review the proposed rule change to list and trade shares of the VanEck Bitcoin Trust.

This puts the final deadline to get approval or disapproval on the application at November 14, 2021.

The application to list VanEck’s Bitcoin Trust was filed by Cboe BZX Exchange in March this year but continued to postpone making any decision. The commission can take up to 180 days from the filing date to announce its decision, with an additional 60 days permitted if it is deemed “appropriate.”

This time, the notice stated that the Commission finds it appropriate to allocate a longer period to issue its order on the application,

“so that it has sufficient time to consider the proposed rule change and the issues raised in the comment letters that have been submitted in connection therewith.”

VanEck is one of 13 companies awaiting an answer from the SEC on approval with other players, including Ark Invest, Valkyrie Investments, One River Asset Management, and SkyBridge Capital.

Coming Soon?

SEC Chair Gary Gensler recently said that the agency is more open to a futures-backed BItcoin ETF as it offers an additional level of security due to being governed by the CME. Also, futures requires investors to put down cash on margin to trade as collateral and, in the case of CME, a minimum of 35% of the amount. Gensler said earlier last month,

“I anticipate that there will be filings with regard to exchange-traded funds (ETFs) under the Investment Company Act (’40 Act). When combined with the other federal securities laws, the ’40 Act provides significant investor protections. Given these important protections, I look forward to the staff’s review of such filings, particularly if those are limited to these CME-traded Bitcoin futures.”

Since Gensler’s comments, at least seven firms, including VanEck and Invesco, have applied to launch Bitcoin futures products.

Industry experts expect a Bitcoin futures ETF to receive SEC approval by October or November.

Grayscale Gives A Warning

This is now raising the largest digital asset manager Grayscale’s hackles. As we reported, CEO Michael Sonnenshein in an interview with CNBC this week, said,

“It would be shortsighted of the SEC to allow a futures-based product into the market before a spot product.”

Grayscale, which has a closed-ended Bitcoin Trust, is also looking to convert its product into an ETF. According to Sonnenshein,

“If a futures-based ETF comes to market without the ability for GBTC to convert to an ETF, it has the potential to harm investors who hold tens of billions of dollars’ worth of GBTC today outright, as well as the investors who have exposure to GBTC inside mutual funds, retirement accounts, and other places.”

While SEC has yet to approve a single crypto ETF in the past 8 years when the first BItcoin ETF was filed by the Winklevoss brothers, Canada has already approved a number of Bitcoin and Ether ETFs.

Canada and North America’s first ETF tracking Bitcoin, Purpose Bitcoin ETF (BTCC), which has $747 million in assets, is now trailing its competitors 3iQ CoinShares Bitcoin ETF (BTCQ) that was launched two months later and has now amassed $1.2 billion (US$946 million) in assets.

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Author: AnTy

VanEck Files for a “Bitcoin Strategy ETF” After SEC Chair’s Positive Signal

VanEck has filed for a “Bitcoin Strategy ETF” with the US Securities and Exchange Commission (SEC), which will hold bitcoin futures and other bitcoin funds.

In 2017, VanEck unsuccessfully attempted to list such a fund with the SEC, but now that SEC Chair Gary Gensler has signaled that he is open to an exchange-traded fund backed with Bitcoin futures, four such filings have been made under the 40 Act.

The investment firm, as such, is now resubmitting the application with some amendments and is hopeful for approval, given that future markets have matured significantly in the past four years.

Much like Invesco, which filed its Bitcoin ETF last week, VanEck clarified that “the Fund does not invest in bitcoin or other digital assets directly.”

The fund will be an actively managed ETF that will provide exposure to Bitcoin Futures, pooled investment vehicles including ETFs listed and traded in Canada, and exchange-traded products (ETPs) invested in bitcoin, according to the filing.

These investments will be made through a Cayman Islands-based wholly-owned subsidiary of VanEck.

In June, the firm also filed a similar prospectus for a bitcoin futures mutual fund, managed by Gregory Krenzer, just like the latest fund.

While the Bitcoin, Ether, and crypto ETF applications continue to pile on the SEC’s desk, running in double-digits, the SEC has yet to approve a single crypto ETF. But with Gensler’s recent comments, a product with futures products may finally get approved.

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Author: AnTy

VanEck’s CEO Calls for Bitcoin ETF Approval Amid Intense Customer Demand

Following another delay in the approval of the VanEck Bitcoin exchange-traded fund (ETF), the CEO of the investment firm has called for a prompt decision.

In a recent interview with CNBC, Jan van Eck urged the Securities and Exchange Commission (SEC) to approve a Bitcoin ETF due to the high customer demand.

SEC Continues Delay In Approving VanEck’s Bitcoin ETF

Last week, the SEC postponed its decision on approving VanEck’s Bitcoin ETF for the second time.

The agency extended the review process till August 2021 while requesting public comments on the proposed rule change and if the ETF would be vulnerable to market manipulation.

During the interview on CNBC’s ETF Edge, van Eck highlighted the growing demand for a Bitcoin ETF, adding that investors are asking for a more efficient means of trading the premier digital asset.

The CEO also took a shot at the Grayscale Bitcoin Trust, the largest bitcoin-related fund on the market. He said that the only alternative to a Bitcoin ETF in the US is a closed-end fund that trades it at a 40% premium or 20% discount. VanEck added,

“Bitcoin futures … aren’t any better because of the shape of the futures curve. There’s a futures-based fund that underperformed bitcoin by 22% last year and 8% this year.”

Speaking on the frequent delays, VanEck said the April extension was only an artificial deadline. According to him, the SEC chairman was unwilling to prioritize or make a decision regarding a Bitcoin ETF.

Van Eck’s comments come amid his company’s continual attempt to have an exchange-traded product approved in the US.

The global investment firm currently has two ETF proposals with the SEC awaiting approval, a Bitcoin ETF and an Ethereum ETF.

VanEck filed the Bitcoin ETF last year intending to work alongside Chicago Board Options Exchange (Cboe) on the proposed offering.

The Ethereum ETF, which is the first Ethereum ETF proposal in the US, was filed earlier this month. VanEck’s goal for this ETF is to expose retail and institutional traders to ETH without directly investing.

Meanwhile, the SEC has also delayed in approving ETFs from firms like WisdomTree, Kryptoin, and Fidelity Investments.

VanEck Files New Prospectus For A Bitcoin Futures Mutual Fund

As VanEck waits for the SEC’s final decision on its Bitcoin ETF, the firm decided to also file another draft prospectus for a BTC Futures Mutual Fund.

Dubbed the “Bitcoin Strategy Fund,” the fund is aimed at investing in BTC futures contracts, pooled investment vehicles, and ETPs with exposure to the largest cryptocurrency.

According to the prospectus, the fund will invest in Bitcoin futures through a subsidiary in the Cayman Islands, and the portfolio will be managed by Gregory Krenzer.

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Author: Jimmy Aki

Another Ethereum ETF Filed with the SEC

Now, two companies, VanEck and Wisdom Tree, have joined the race for an Ethereum ETF, with a longer coverage of risks, including consensus mechanism shift, energy-intensive mining raising the economic and societal costs of mining, congestion in-network, and more.

  • WisdomTree is the latest one and the second to file for an Ethereum exchange-traded fund (ETF) after VanEck.

According to the filing with the Securities and Exchange Commission (SEC), Wisdom Ethereum Trust has named Cboe BZX Exchange as the exchange to list the ETF under a to-be-determined ticker symbol if approved. The ETF specialist firm hasn’t picked a crypto custodian yet.

WisdomTree has already filed for a Bitcoin ETF, but the US regulator has yet to approve a single one in the country. In Canada, several Bitcoin ETFs and Ether ETFs have been approved and are already demonstrating a spectacular performance making the US companies excited and competitive to be the ones to launch the investment vehicle first to gain the first-mover advantage.

While several, at least nine Bitcoin ETFs have been filed in the US, lately, Ether has also joined the race amidst the bull run as the crypto market matures and the second-largest cryptocurrency grabs the attention.

As we reported recently, JPMorgan, Goldman Sachs, and billionaire investor Carl Icahn have come in support of Ethereum, finding it more valuable as a payments system and a store of value than Bitcoin.

Besides the usual risks, this time, in regards to Ethereum, the firm also covered several more, including hard fork, its energy-intensive mining, raising concerns about climate change that may raise the economic and societal costs of mining, moving from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus mechanism, new competing blockchain networks posing a challenge and competition from central bank digital currencies (CBDCs).

Congestion or delay in the Ethereum network delaying purchases or sales of ether by the Trust, scaling challenges and efforts to increase the volume of transactions not turning out to be successful, and miners acting in collusion to raise transaction fees adversely affecting the usage of the Ethereum network, are also covered as potential risks for the loss in the value of the Trust.

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Author: AnTy

SEC Postpones Decision on VanEck Bitcoin ETF to June 17

The US Securities and Exchange Commission (SEC) has delayed its decision on the VanEck Bitcoin ETF until June.

On March 1, 2021, Cboe BZX Exchange filed with the SEC to list and trade shares of the VanEck Bitcoin Trust. The SEC typically takes 45 days, or a longer period of 90 days, from the date an application is filed to render a decision whether it should be approved or disapproved.

Per standard, the 45-day window for the application ends on May 3, but the SEC is extending the deadline. The official notice reads,

“The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the comments received.”

As such, June 17 is designated as the date by which the Commission shall either approve or disapprove, but of course, even then, they can defer the decision, which is to be seen.

As we reported, the new SEC Chairman Gary Gensler, who has taught about crypto and blockchain at MIT, was confirmed less than a fortnight ago.

In the past, SEC disapproved every single Bitcoin ETF application on the grounds of extreme price volatility, manipulation, and fraud in the crypto market.

Meanwhile, several Bitcoin ETFs have been approved this year in other countries. Canada has even moved past Bitcoin and already has four Ether ETFs trading on the Toronto Stock Exchange. Purpose Bitcoin ETF, the most popular in North America so far, has amassed almost 18,685 BTC.

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Author: AnTy

VanEck’s Launches Physically-Backed Bitcoin ETN on Deutsche Böerse Xetra

Asset manager VanEck has listed a Bitcoin ETN on the regulated segment of Deutsche Börse Xetra, as per the announcement on Wednesday.

This product will allow investors to participate directly in the performance of bitcoin but without buying the digital currency themselves, making it as “uncomplicated” as trading in shares or ETFs.

“Bitcoin’s low correlation to other asset classes makes it an excellent way to contribute to the diversification of a portfolio,” says Martijn Rozemuller, Head of Europe at VanEck.

For cold storage, VanEck is working with Liechtenstein-based regulated crypto custodian Bank Frick.

The most important feature of this Bitcoin ETPs is that it is physically backed by the real BTC meaning the

“money invested in the ETN is actually used to buy bitcoin.”

Negligible premium/discount to NAV, transparent holdings, transparent prices, and investor protections are its other features, shared Gabor Gurbacs, VanEck’s director of digital asset strategy.

“VanEck is committed to support Bitcoin-focused financial innovation. Bringing to market a physical, fully-backed major exchange-listed Bitcoin ETP was a top priority of our firm. We succeeded! We hope to serve many clients and partners in Europe, Asia and across the world using our innovative, investment-friendly and regulatory-conscious access vehicles,” Gurbacs said.

VanEck had also filed for a Bitcoin ETF in the US in collaboration with SolidX but like all the other proposals, it was rejected by the regulators. Before the final deadline, it actually withdrew its own proposal but said it will continue to pursue an exchange-traded fund.

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Author: AnTy

VanEck Explains The Investment Case for Bitcoin: 4 Reasons To Add BTC to Your Portfolio

VanEck – which is known as the first U.S investment management company performed research and released it on October 8 with the name ‘The Bitcoin Investment Case’ where it aims to determine the role of cryptocurrency in an investment portfolio. VanEck has registered 4 reasons on why Bitcoin improvises the investment portfolio upside. According to Bloomberg reports, VanEck is the same firm, which tried to list Bitcoin-based exchange-traded funds (ETF) with the U.S. Securities and Exchange Commission in 2018.

1. Monetary Value Instead of Intrinsic Value

Often Bitcoin is referred to as ‘digital coin’ since, similar to the metal, it is a potential store of significant worth. Intrinsic value exists because an economic good—such as equities, real estate and consumable commodities like corn and oil—produces cash flow or has overt utility.

Monetary value exists despite an economic good not having intrinsic value or because it has value beyond its intrinsic value. Examples include gold and other precious metals, artwork and gemstones.

While critics of Bitcoin typically call out for attention that behind Bitcoin’s fiasco the primary debate was it had no intrinsic value. VanEck in his article gave u a clear picture of both the terms – intrinsic value (IV) and monetary value (MV). Intrinsic value exists because of an economic good—such as equities, real estate, and consumable produce like corn and oil, which brings cash flow. And Monetary value exists in spite of an economic good not having intrinsic value like gold and other precious metals. As per the firm, Bitcoin attains a monetary value since it is rare, stable, has solid privacy attributes (for example it is pseudonymous), is a bearer asset that can be remembered (making it particularly valuable in tyrant systems).

2 – Low Correlation to Standard Property

Bitcoin may likewise expand portfolio enhancement because of reasons such as low relationship to traditional asset classes, for example, gold, securities, and wide market value list, according to VanEck.

The firm presented a table to prove its point. The table contains a list of Bitcoin’s connection with significant market lists, for example, S&P 500, oil, land, estimating the correlation level on a scale from – 1 to 1.

Source – VanEck

3- Shortage Reinforced by Halvings

Bitcoin halvings laid out as a half square recognition lower to Bitcoin manufacturing fee, are customized to happen pretty much every single 4 years, VanEck characterized, noticing that every halving match has eventually brought about an extension of Bitcoin’s value. The following Bitcoin’s dividing is scheduled for May 2020.

4- Growing Adoption

As a piece of the rising adoption of Bitcoin VanEck referred to reality that Bitcoin exchanges surpass 400,000 permissionless exchanges an evening, while Bitcoin on-chain exchanges amount to a remarkable segment of SWIFT exchanges. The organization moreover celebrated that present crypto trades are healthy and are here to stay.

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Author: Sritanshu Sinha

VanEck/SolidX to Launch Limited Option Bitcoin ETFs for “Qualified Institutional Investors” on Sept 5

VanEck Securities and SolidX Management announced plans to launch an institutional-grade Bitcoin exchange-traded funds (ETF) for accredited institutions such as hedge funds, banks, etc. The Bitcoin ETF will not be available to retail investors yet.

The Rule 144A Exemption

The Securities Exchange Service Commission (SEC) postponed the decision to approve VanEck/SolidX Bitcoin ETFs hence the latest use of an exemption Rule 144A law that allows sale to ‘qualified institutional buyers’. A press release from the firms confirmed that the Bitcoin ETFs will finally be issued out – albeit with limited options – starting this Thursday.

“Rule 144A modifies the Securities and Exchange Commission (SEC) restrictions on trades of privately placed securities so that these investments can be traded among qualified institutional buyers, and with shorter holding periods—six months or a year, rather than the customary two-year period.”

The companies will use SEC’s Rule 144A exemption to sell their shares in the Bitcoin Trust which in turn exposes them to the ETF. Only a select group of companies will be eligible to participate in the ETF sale, but not retailers.

A Hope for Approval?

The new asset class becomes the first-ever institutional-grade asset providing “exposure to BTC and enabling a standard ETF creation-and-redemption process.” This will increase the liquidity of Bitcoin across the board offering qualified institutions a physically-backed Bitcoin asset product available in traditional markets and brokerages.

The director of digital asset strategies at VanEck/MVIS, Gabor Gurbacs is looking forward to success of the product as they await on the decision of the SEC. He said,

“This Qualified Institutional Buyers (QIBs) only 144A Bitcoin product may pave the way for institutional Bitcoin adoption and showcase that an appropriately regulated ETF structure can work in practice.”

Daniel H. Gallancy, CEO of SolidX, shared similar sentiments and looks at a bright future for the product. He commented,

“We view the product as an exciting next step for SolidX and VanEck in our partnership as we work to bring institutional-quality crypto asset products to the marketplace.”

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Author: Lujan Odera