The spot Bitcoin ETF craze has taken over the market and it won’t fade away until one of the many applications gets approved by the United States Securities and Exchange Commission (SEC).
VanEck, a prominent asset manager, has made a compelling move in the race for a spot Bitcoin exchange-traded fund (ETF). On October 27, they filed an amended application with the SEC.
This signals their commitment to bringing a unique investment approach to the table. This amended filing caught the attention of many experts and analysts in the crypto sector.
What did they amend?
The key highlight of this updated filing is the revelation that a seed capital investor has recently acquired the Seed Creation Baskets. It is a a block of 50,000 shares of the proposed ETF, using Bitcoin. It differs from other spot Bitcoin ETF proposals that rely on cash for their initial seeding, marking a notable departure from the norm.
Finance lawyer Scott Johnsson weighed in on this groundbreaking development, stating, “The filing suggests the fund seeding will be carried out with Bitcoin, different from other spot Bitcoin ETF proposals with seeding in cash.” This move brings a fresh perspective to the table, as it directly aligns the ETF’s investments with Bitcoin itself, rather than Bitcoin futures.
This unique approach has piqued the interest of traditional asset managers and investors. They are among those have been seeking a direct and robust avenue to gain exposure to Bitcoin. The spot version of the product is poised to attract high investments from these groups.
What’s the update of Bitcoin ETFs?
VanEck’s is not an isolated case. It joins a growing list of asset managers who have recently updated their applications for spot Bitcoin ETFs. Bitwise Asset Management and Blackrock made a significant move by amending its application to address the SEC’s concerns about the product.
ARK Invest and 21Shares also provided more insights into their proposed spot Bitcoin ETF. It included their practices for asset custody and valuation. It only indicates that negotiations with regulators are making solid progress.
The United States SEC has been delaying several spot Bitcoin ETF applications by BlackRock, Invesco, Bitwise, VanEck, and Valkyrie. Market experts and analysts anticipate that a decision on these proposals should be reached in the coming weeks, marking a potentially game-changing moment for cryptocurrency investments in the United States.