The matter of Bitcoin ETFs in the United States is a subject that is highly speculated. Crypto community members address the issue from time to time. In other North American regions, Bitcoin and Ethereum based ETFs have been approved. However, thus far, not a single crypto-based ETF is approved by the Securities and Exchange Commission.
An ETF or Exchange Traded Fund is an asset class derivative or a contract that allows investors to gain exposure to cryptocurrencies without engaging in buying or selling directly. Many investors believe that if a Bitcoin-related ETF is approved, it could reflect in the price market by significant appreciation. Recently international asset management firm filed for a Bitcoin ETF with SEC.
Eric Balchunas has extensive experience in ETF-related trading, and he is working with Bloomberg as a correspondent and strategist for some years now. In his latest article, he claimed that VanEck used the Investment Company Act of 1940 as a basis of their ETF application. Balchunas also claimed that this is the fourth ETF application submitted to SEC using the same legal framework.
According to him, due to the better legislative basis and framework, this type of ETF has a high probability of meeting with approval. This ETF contains BTC-pegged futures as well as miscellaneous funds tied to the flagship cryptocurrency. This ETF application is in many ways similar to the strategy ETF chartered by Invesco.
VanEck also Filed Applications for Bitcoin ETF in the Past
This is not the first time VanEck has applied for a Bitcoin-related ETF. The first application was submitted to SEC back in December 2020. The asset management firm is also trying to establish an Ethereum based Trust and already submitted an application that is awaiting approval. Despite not getting the go-ahead in the USA, VanEck introduces the first ETF in Europe called the UCITS ETF. This ETF was able to acquire a listing on London and Deutsche stock exchanges.
The VanEck Vectors Digital Assets Equity ETF tracks MVIS Global Virtual Asset Equity Index. This index is tied with the revenue stream of the largest and most profitable enterprises that are working in the crypto industry. If the Ethereum ETF application by VanEck is approved, it will be listed on Cboe BZX. The application was submitted to SEC in May this year.