The United States Securities and Exchange Commission are known to always shun Bitcoin ETF requests but this hasn’t stopped firms from trying.
On Wednesday, VanEck filed for a Bitcoin exchange traded fund (ETF) with the US Securities and Exchange Commission. If approved, the Bitcoin ETF will trade on CBOE BZX Exchange.
VanEck files for bitcoin ETF…
— Nate Geraci (@NateGeraci) December 30, 2020
According to the ETF proposal, VanEck is expected to hold a specific amount of Bitcoin through a custody for each of the share issued on the CBOE BZX Exchange. In a nutshell clients will not be buying units of Bitcoin but just speculating on the asset’s performance.
Barring a liquidation or extraordinary circumstances, the Trust does not intend on purchasing or selling bitcoin directly, although the Trustee may direct the Bitcoin Custodian to sell bitcoin to pay certain expenses.
This is the third time VanEck is filling for a Bitcoin ETF. The first filing was in 2018 which was subsequently withdrawn by the firm in January 2019. The second was withdrawn in September 2019 citing inactivity and uncertainties around regulation.
Another firm that has pushed for a Bitcoin ETF in the past with the US Securities and Exchange Commission for US investors is Wilshere Phoenix.
VanEck is an investment management firm based based in New York.