VanEck, an asset manager, has recently filed an amended application for a spot Bitcoin (BTC) exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC). The application, which was filed on October 27, indicates that a seed capital investor has purchased the Seed Creation Baskets of the proposed ETF using Bitcoin.
Unlike other spot Bitcoin ETF proposals, which typically use cash for seeding, VanEck’s amended filing emphasizes the use of Bitcoin for fund seeding. This move is expected to attract investors who are seeking exposure to Bitcoin via traditional asset managers. The spot version of the ETF would directly invest in Bitcoin, as opposed to investing in Bitcoin futures like existing ETFs.
VanEck joins a growing list of asset managers that have updated their applications for a spot Bitcoin ETF. In September, Bitwise Asset Management also filed an amended application in response to the SEC’s objections to the product. Additionally, ARK Invest and 21Shares recently amended their joint application, providing more information about their proposed spot Bitcoin ETF, including details on asset custody and valuation practices.
The increasing number of amended filings suggests that negotiations between asset managers and regulators are progressing. Analysts believe that the changes in ETF proposals may be a result of SEC requests for issuers to address concerns. ETF analyst Eric Balchunas commented that the amendments indicate progress and a positive response from the SEC.
The SEC has previously delayed its decision on several proposals for spot Bitcoin ETFs, including those from BlackRock, Invesco, Bitwise, VanEck, and Valkyrie. However, market participants and analysts are optimistic that a decision will be made within the next few weeks.
The potential approval of a spot Bitcoin ETF in the United States is highly anticipated by the crypto community. It would provide investors with an easier and more regulated way to gain exposure to Bitcoin, which could potentially lead to increased adoption and mainstream acceptance of the cryptocurrency.
In conclusion, VanEck’s amended application for a spot Bitcoin ETF signifies a growing trend of asset managers updating their proposals. The use of Bitcoin for fund seeding sets this application apart from others that rely on cash for seeding. As negotiations between asset managers and regulators progress, market participants eagerly await a decision from the SEC on the approval of spot Bitcoin ETFs.