A few months ago VanEck and Cboe asked the SEC for authorization to issue a bitcoin ETF.
The SEC has postponed the decision, and has not yet issued its verdict, but VanEck and Cboe’s work continues.
In fact, several bitcoin ETFs have already been issued in Canada and are enjoying some success, so it is possible that, if the SEC also authorizes some on the US market, this could have immediate success.
With this in mind, those who want to create a bitcoin ETF must make sure not only that they have enough BTC in hand, but also that they keep them carefully.
For this reason VanEck has chosen the Gemini exchange as custodian of the BTCs that will be acquired to support the ETF.
— Tyler Winklevoss (@tyler) June 9, 2021
VanEck’s Bitcoin ETF
A new document from VanEck Digital Assets on its Vaneck Bitcoin Trust was filed with the SEC on June 4 stating that the Gemini Trust Company will act as custodian of the Trust’s bitcoins.
The VanEck Bitcoin Trust will be the exchange-traded fund that will issue common stock traded on the Cboe BZX Exchange with the aim of replicating the performance of MVIS’s CryptoCompare Bitcoin Benchmark Rate. The Trust will hold bitcoins and value its shares daily based on the Benchmark Rate.
The Trust does not intend to buy or sell bitcoins directly, but will only hold them as collateral for the shares put on the market.
Gemini, as custodian of the Trust’s bitcoins, will store private keys in two different forms, namely hot wallets, whose private keys will be stored on secure devices connected to the Internet, and cold wallets, whose private keys are stored on offline devices. .
The new document submitted to the SEC also has a substantial section devoted to risks, which makes up more than a quarter of the overall length. In fact, risks are the main problem that seems to be at the basis of the SEC’s refusal, for now, to approve a bitcoin ETF.
This substantial additional document, which adds to the original filing of the request delivered to the SEC in March, could provide the agency with additional information to help decide whether or not to approve VanEck’s request.