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VanEck Proposes ETF for Bitcoin

One of the former proponents for an exchange traded fund (ETF) focused on Bitcoin is seeking again as 2020 comes to a close: VanEck has sent a proposal to the U.S. Commission on Securities and Exchange (SEC) for the “VanEck Bitcoin Trust.”

An ETF is seen as beneficial because it invests in popular firms such as Apple and Microsoft on the stock exchange much like shares do. Earlier, VanEck had recommended ETFs, withdrawing its most recent application in September 2019. The firm confirmed at the time that it was committed to an exchange-traded product.

VanEck said that this ETF will trade on the Cboe BZX Market, as it did in previous applications.

According to the coindesk.com, several proposals for bitcoin-based ETFs have been considered and refused by the SEC. It declined nine such proposals in August 2018 on the same day. SEC Chairman Jay Clayton said in October that the department was still open to exploring ideas for ETFs.

Last week, Chairman Clayton stepped down officially. According to the firm, Dalia Blass, the head of the Investment Management Division, will also end her tenure in January. Blass was the subject of a letter from the SEC in 2018 expressing fears that the demand for bitcoin was not big enough or liquid enough to be ready for an exchange-traded product.

According to the application, the number of the outstanding shares will depend on how much BTC is delivered to the Trust and held by an, as yet, undesignated custodian.

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SourceCoinDesk

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