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After multiple attempts, VanEck refiles for Bitcoin ETF with SEC

Updated: Aug 23, 2024
Published: Dec 31, 2020
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New York-based investment management firm VanEck is taking another shot at getting a bitcoin exchange-traded fund (ETF) approved. The asset manager has filed an application with the U.S. Securities and Exchange Commission (SEC) for a new fund known as VanEck Bitcoin Trust.

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VanEck, one of the major advocates for a Bitcoin ETF, has previously filed for the same product twice but withdrew the application on both occasions following a series of rejections by the securities regulator. Despite the setbacks, the asset manager maintained its commitment to an ETF.

If the application gets the green light, it would be the first ETF to get approval from the SEC.

The securities regulator, which has received numerous applications of the same nature, has rejected all the previous proposals. In August 2019, the agency rejected nine similar applications in a single day.

Jay Clayton, who recently left his post as the agency’s chairman, said the SEC was not closing the door on such products.

The VanEck Bitcoin Trust

Per the application, the ETF’s would be traded on the Cboe BXZ Exchange. The value of the shares will be calculated on a daily basis based on the price of bitcoin on the top five exchanges.

An ETF gives investors a chance to invest in bitcoin without owning the digital asset. However, the shares of the ETF are tied to the performance of Bitcoin, the underlying asset.

Gabor Gurbacs, the Director of Digital Assets at VanEck, pointed out that the firm is prioritizing bringing a physical bitcoin ETF to the U.S.

We are committed to support bitcoin-focused innovation & continue to work with regulators & market participants to achieve that goal. VanEck has successfully launched a bitcoin ETP in Europe,” he added.

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