After successfully launched a bitcoin exchange-traded product in Europe, Vaneck has now filed a new proposal for a bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). Under former chairman Jay Clayton, the SEC never approved a bitcoin ETF. However, Clayton has resigned from his post and changes may be coming from the incoming Biden administration.
First Bitcoin ETF Filing After Clayton’s Departure
New York-based investment management firm Vaneck filed a registration statement with the U.S. Securities and Exchange Commission (SEC) on Dec. 30 to list and trade the Vaneck Bitcoin Trust. According to the filing, the sale of the fund’s shares will commence “As soon as practicable after the effective date of this registration statement.”
“The Vaneck Bitcoin Trust (the ‘Trust’) is an exchange-traded fund that issues common shares of beneficial interest (the ‘Shares’) that trade on the Cboe BZX Exchange Inc.,” the filing describes. “The Trust’s investment objective is to reflect the performance of the Mvis Cryptocompare Bitcoin Benchmark Rate less the expenses of the Trust’s operations.”
The filing adds that to achieve its investment objective:
The Trust will hold bitcoin and will value its shares daily based on the reported Mvis Cryptocompare Bitcoin Benchmark Rate.
This rate is calculated based on exchanges that the MV Index Solutions GmbH (Mvis) believes represent the top five bitcoin exchanges based on the Cryptocompare Exchange Benchmark review report. Vaneck Digital Assets is the sponsor of the Trust and Delaware Trust Company is the trustee.
“Barring a liquidation or extraordinary circumstances, the Trust does not intend on purchasing or selling bitcoin directly, although the Trustee may direct the Bitcoin Custodian to sell bitcoin to pay certain expenses,” the filing continues. “Instead, when the Trust sells or redeems its Shares, it will do so in ‘in-kind’…