Asset manager VanEck filed an amended application for a bitcoin (btc) exchange-traded fund (ETF) on October 27 with the United States Securities and Exchange Commission (SEC). according to the regulator’s database.
The amended filing highlights that an early equity investor purchased Seed Creation Baskets (a block of 50,000 shares of the proposed ETF) in October with bitcoin prices determined by MarketVector’s bitcoin Reference Rate, an index used as a reference price for the cryptocurrency.
According to financial lawyer Scott Johnsson, the filing suggests that the fund will be seeded with bitcoin, unlike other cash-seeded spot bitcoin ETF proposals.
Anddddd @vaneck_us joins the amendment submissions for the venue bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin ETF Issuers. h/t @NateGeraci pic.twitter.com/zdYuUTAaE6
-James Seyffart (@JSeyff) October 29, 2023
A bitcoin spot ETF would invest directly in bitcoin, unlike existing ETFs that invest in bitcoin futures. The spot version of the product is expected to attract substantial investments from investors seeking exposure to bitcoin through traditional asset managers.
With this new filing, VanEck joins a growing list of asset managers updating 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.
Earlier this month, ARK Invest and 21Shares also amended their joint filing, providing additional information about their proposed bitcoin spot ETF, including asset valuation and custody practices.
The wave of amended filings may indicate that negotiations between asset managers and regulators are moving forward. Commenting on filings pending regulatory approval, ETF analyst Eric Balchunas recently noted that changes to the ETF proposals may reflect requests from the SEC for issuers to address their concerns.
“It means ARK received the SEC’s feedback and dealt with all of it, and now put the ball back in the SEC’s court,” Balchunas explained on X (formerly Twitter). “(In my opinion) it’s a good sign, solid progress.”
The US SEC has delayed its decision on several spot bitcoin ETF proposals in the country, including those from BlackRock, Invesco, Bitwise, VanEck and Valkyrie. Market participants and analysts predict that a decision should be made within weeks.
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