Asset Manager VanEck Tweaks Its Spot Bitcoin ETF Application

VanEck Tweaks Its Spot Bitcoin ETF Application as the Regulatory Clock Ticks

Key Takeaways

VanEck has made unique amendments to its spot Bitcoin ETF application.
Alongside VanEck, other asset management firms like Bitwise and ARK Invest have also updated their applications, potentially in response to SEC feedback.
These modifications could be a sign of progressing negotiations between the asset managers and the SEC, making the approval of a spot Bitcoin ETF increasingly likely.

VanEck, an American asset management firm, has updated its ongoing application for a spot Bitcoin ETF with the US Securities and Exchange Commission (SEC).

The adjustment states that the ETF's initial capital was acquired through blocks of 50,000 shares, valued by referencing the MarketVector Bitcoin Benchmark Rate.

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According to legal finance expert Scott Johnsson, this strategy is unique since it suggests the ETF's foundation will be in Bitcoin rather than fiat currency, differentiating it from similar applications.

Direct investment in Bitcoin is the cornerstone of a spot Bitcoin ETF, making it distinct from existing ETFs that invest in Bitcoin futures contracts. This kind of investment vehicle is anticipated to draw significant interest from traditional investors who wish to add Bitcoin to their portfolios without taking on the complexities of direct cryptocurrency ownership.

VanEck isn't the only asset manager making adjustments. Bitwise Asset Management took a similar step last month by updating its application after the SEC expressed reservations. ARK Invest and 21Shares also revised their collaborative proposal, supplying the SEC with supplementary information on how they plan to manage and value the assets.

Eric Balchunas, an analyst specializing in ETFs, stated that these alterations hint at progress in talks with regulatory authorities.

It means ARK got the SEC’s comments and has dealt with them all, and now put <the> ball back in <the> SEC’s court.

Although the SEC has postponed decisions on several spot Bitcoin ETF applications from major players such as BlackRock, Invesco, Bitwise, and Valkyrie, the slew of updated filings creates a sense of optimism that approval may be forthcoming.

The refining of VanEck's spot Bitcoin ETF application could be a bellwether for the industry, signaling that asset managers and regulatory bodies might be closing in on an agreement. As the landscape of amended applications grows, market participants hold a cautiously optimistic view that a regulated spot Bitcoin ETF may soon become a reality.