Vaneck files new Bitcoin ETF proposal with SEC under new administration

After successfully launching a Bitcoin exchange-traded product in Europe, Vaneck has now filed a new Bitcoin exchange-traded fund (ETF) proposal with the United States Securities and Exchange Commission (SEC). Under former Chairman Jay Clayton, the SEC has never approved a bitcoin ETF. However, Clayton resigned from his post and changes could come from the new Biden administration.

First Bitcoin ETF deposit after Clayton left

New York-based investment management firm Vaneck filed a registration statement with the United States Securities and Exchange Commission (SEC) on December 30 to list and trade the Vaneck Bitcoin Trust. According to the filing, the sale of shares in the fund will begin “as soon as possible after the effective date of this registration statement.”

“The Vaneck Bitcoin Trust (the ‘Trust’) is an exchange-traded fund that issues common shares of beneficial interest (the ‘Shares’) that trade on the Cboe BZX Exchange Inc.,” the file describes. “The investment objective of the Trust is to reflect the performance of the Bitcoin Mvis Cryptocompare benchmark rate less expenses related to the operations of the Trust.”

The file adds that to achieve its investment objective:

The Trust will hold bitcoins and will value its shares daily based on the reported Mvis Cryptocompare Bitcoin benchmark rate.

This rate is calculated based on the exchanges which, according to MV Index Solutions GmbH (Mvis), represent the top five bitcoin exchanges based on the Cryptocompare Exchange Benchmark review report. Vaneck Digital Assets is the limited partner of the trust and Delaware Trust Company is the trustee.

“Barring liquidation or extraordinary circumstances, the Trust does not intend to buy or sell bitcoin directly, although the trustee may order the Bitcoin custodian to sell bitcoin to pay for certain expenses,” the deposit continues. “Instead, when the Trust sells or redeems its shares, it will do so in block ‘in-kind’ transactions… at the net asset value of the Trust.

Gabor Gurbacs, director of digital asset strategy at Vaneck, tweeted:

Getting a physical bitcoin ETF to market in the US is a top priority for Vaneck. We are committed to supporting bitcoin-driven innovation and continuing to work with regulators and market players to achieve this goal.

In November, Vaneck launched a Bitcoin Exchange Traded Note (ETN) in Europe. “The ETN is physically backed by Bitcoin and listed on Deutsche Böerse Xetra,” Gurbacs explained.

The bitcoin ETF’s new deposit came a week after former SEC Chairman Jay Clayton resigned from his post on December 23. Under his leadership, the SEC never approved a bitcoin ETF. President Donald Trump has appointed Commissioner Elad L. Roisman as the acting chairman of the SEC. Meanwhile, Interim Currency Comptroller Brian Brooks has warned that changes could come from the Biden administration. They may include certain measures put in place by the Office of the Comptroller of the Currency (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 section below.

Tags in this story

Administration Biden, Bitcoin ETF, Bitcoin ETF Europe, Bitcoin ETF US, Bitcoin ETN, Bitcoin ETP, BTC ETF, Exchange Traded Fund, Jay Clayton, New Chairman of the SEC, SEC Endorses Bitcoin ETF

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