VanEck Updates Its Spot Bitcoin ETF Application

Asset manager VanEck amended its application for a spot Bitcoin exchange-traded fund (ETF) with the Securities and Exchange Commission (SEC) last week. According to the watchdog’s database, the amended filing was submitted on Friday, October 27.

The updated filing shows that a seed capital investor purchased Seed Creation Baskets – a block of 50,000 shares of the proposed ETF – in October with the MarketVector Bitcoin Benchmark Rate being used a reference for Bitcoin prices. Finance lawyer Scott Johnsson notes that this suggests that unlike with other spot Bitcoin ETF proposals seeded with cash, VanEck’s fund will likely use Bitcoin.

Similar language to the Blackrock amendment re: seeding. Perhaps not too surprising given both issuers are represented by the same lawyers at Clifford Chance. Except here, instead of seeding with cash like iShares, Vaneck suggests they’ll seed with bitcoin.

— Scott Johnsson (@SGJohnsson) October 29, 2023

The New York-based asset manager joins several of its counterparts that have updated their applications for a spot Bitcoin ETF in the United States. Last month, Bitwise Asset Management updated its spot Bitcoin ETF application following objections to the product by the SEC. Earlier this month, ARK Invest and 21Shares submitted an amended version of their joint application for a spot Bitcoin ETF. The updated filing provided additional information about the product such as practices for asset custody and valuation.

The recent uptick in amendments to filings awaiting SEC approval could be a sign of progress in negotiations between asset managers and regulators. Bloomberg’s Senior ETF Analyst Eric Balchunas expressed this sentiment recently. He stated that the amendments being made could be meant to address the regulator’s concerns.

“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,” Balchunas explained on social media platform X. “[In my opinion] good sign, solid progress.”

The SEC is yet to make a decision on several proposals for spot Bitcoin ETFs including those submitted by BlackRock, Invesco, Bitwise, VanEck and Valkyrie. We can expect that the decision will be revealed by the SEC already in the coming weeks.

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2023-10-30 13:24