In a Wednesday filing with the SEC, VanEck said the public offering of its Bitcoin (BTC) Strategy ETF, which offers exposure to the crypto asset through futures contracts, would begin “as soon as practicable” after the effective date of the filing, Saturday. This suggests the company could list its shares on an exchange as early as Monday.
Unlike exchange-traded funds offering direct exposure to BTC or Ether (ETH) — which the SEC has not approved — VanEck’s ETF would provide exposure through cash-settled BTC future contracts traded on exchanges registered with the Commodity Futures Trading Commission, pooled investment vehicles, and other exchange-traded products. Having first applied for the BTC futures-linked ETF in August, VanEck could follow ProShares, which on Monday launched its Bitcoin Strategy ETF on the New York Stock Exchange.
The potential VanEck ETF listing comes as BTC and ETH prices reached new all-time highs. According to data from Cointelegraph Markets Pro, the prices of BTC and ETH are $65,955 and $4,003, respectively.
VanEck Bitcoin Futures ETF Gets SEC Greenlight After Spot Rejection
VanEck has had a rollercoaster of a month with its Bitcoin ETFs. After three Bitcoin Futures ETFs were approved by the Securities and Exchange Commission, Spot ETFs became the next big thing as they posed a greater advantage for traders. However, this would prove to not be happening anytime soon as the VanEck Spot Bitcoin ETF was rejected by the regulatory body.
However, all hope was not lost for the investment fund as it had doubled back with a bitcoin futures ETF. This time around, VanEck found success as the SEC has approved this ETF.
VanEck ETF Set To Trade On Tuesday
The timing for the VanEck Bitcoin Futures ETF approval could not be better. Interest in the ETFs had died down considerably after an incredibly successful introduction into the market. What followed had been weeks of low performance as traders cashed out the gains that they had made from investing in the ProShares ETF – the first publicly traded bitcoin ETF – and had seemingly moved on to other options.
BTC price hits $60K | Source: BTCUSD on TradingView.com
With the VanEck ETF set to trade on Tuesday, it is expected that this may give the asset a bit of bump after it had been beaten down from the $69,000 ATH. It may not be the Spot ETF it had hoped for but it is no doubt momentous as it will be only the fourth publicly traded bitcoin ETF in the United States. Furthermore, this could spark renewed interest in futures ETFs, leading to high volumed being traded.
The futures ETF which had been filed with the Securities and Exchange Commission in October will begin trading on Tuesday on the Chicago Board Options Exchange (Cboe). The ETF will trade under the ticker XBTF, according to a notice published by the CBOE.
Bouncing Back After A Rejection
The VanEck Spot Bitcoin ETF had gotten a rejection from the SEC last Friday after the regulatory body had reviewed the filing. The reason given for the rejection was that the CBOE could not provide evidence that the fund could protect investors from fraudulent trading. So with the safety of investors’ funds in mind, the SEC had stamped out the ETF.
This rejection had led to the closing of long positions in the market, as reported by Bitcoinist, but this would not last long as the digital asset had had a relatively green week following this. It did however leave bulls in a tight spot as they now had to do more to keep the asset from sliding. Nevertheless, VanEck seems to have taken the rejection in stride.
The rejection of the VanEck Spot ETF has raised speculations for when the space may see the first approval. Grayscale had also filed to have its flagship bitcoin fund converted into a Spot ETF but there has not been any definite action taken on it by the SEC.
VanEck Bitcoin futures ETF to launch on CBOE on Nov. 16
According to an official notice by the Chicago Board Options Exchange (CBOE), VanEck’s Bitcoin Strategy ETF will start trading on CBOE under the ticker symbol XBTF on Tuesday.
VanEck’s new ETF is joining the growing number of BTC futures-based ETFs launched in the U.S., including the ProShares Bitcoin Strategy ETF, which became the first Bitcoin futures ETF to start trading on the New York Stock Exchange on Oct. 19. Valkyrie’s Bitcoin Strategy ETF started trading on Nasdaq under the BTF ticker in late October.
CBOE’s listing of XBTF comes just a couple of days after the U.S. Securities and Exchange Commission officially rejected VanEck’s spot Bitcoin ETF application. The SEC argued that the proposed rule change to list the ETF did not meet standards to “prevent fraudulent and manipulative acts and practices” or “protect investors and the public interest.”
Launched back in 1955, VanEck is a U.S. asset manager specializing in thematic and gold-based ETFs and mutual funds. VanEck is known in the crypto community as one of the first U.S. firms to ever file for a Bitcoin futures ETF. The firm has submitted multiple BTC ETF filings with the SEC since then but has only managed to get its futures ETF approved to date.
VanEck did not immediately respond to Cointelegraph’s request for comment.
As previously reported by Cointelegraph, SEC Chair Gary Gensler previously hinted that the SEC would be more open to accepting ETFs based on cryptocurrency futures rather than through direct exposure.
However, some companies, such as Bitwise Asset Management, remain bullish on a potential pure Bitcoin ETF, with the firm even deciding to drop its futures ETF filing last week. “Ultimately, what many investors want is a spot Bitcoin ETF. We think that’s possible. So Bitwise will continue to pursue that goal, and we will look for other ways to help investors get access to the incredible opportunities in crypto,” Bitwise chief investment officer Matt Hougan said.
Van Eck frustrated by SEC’s Nov 12 Spot BTC ETF Snub
- The US Securities and Exchanges Commission (SEC) has rejected VanEck Funds’ application for listing a Bitcoin (BTC) Spot Exchange Traded Fund (ETF).
- The decision has left Jan Van Eck, the fund’s chief executive, frustrated.’
The SEC has left Jan Van Eck, chief executive of VanEck Funds, a frustrated man. He’s frustrated because the watchdog dashed VanEck’s hopes of launching a BTC Spot ETF on Friday.
Consequently, Van Eck took to Twitter to express his frustrations with the agency. In the post, he told of his disappointment at the SEC’s rejection of their application.
The firm had sought approval for its product in late 2020. It had roped in crypto trading platform Cboe BZX Exchange. This exchange was to list the EFT once accepted.
Cboe was also the one behind VanEck’s push for regulatory acceptance. The exchange had sought a change in the SEC’s rules to allow for the ETF’s listing.
Notwithstanding the disappointment, Van Eck held that investors should access BTC through regulated funds. And to him, a non-futures ETF is the best option for achieving that goal
We are disappointed in today’s update from the SEC declining approval of our physical bitcoin ETF. We believe that investors should be able to gain #BTC exposure through a regulated fund and that a non-futures ETF structure is the superior approach. @tyler @gaborgurbacs— Jan van Eck (@JanvanEck3) November 12, 2021
The VanECk-Cboe BZX application had attracted a lot of attention within the U.S. Had it gone through, it would have ushered in a new era in spot BTC ETF trading. Besides, the regulator had postponed a decision on the matter severally.
SEC dimming Van Eck
The SEC stated that the fund fell short of Section 6(b)(5) of the Exchange Act. This section requires national securities exchanges to show the ability to stem fraud and manipulation. Again, they should look to secure the interests of both investors and the public.
Before the announcement, there was a growing expectation that the SEC would greenlight the ETF. This belief had speculators suggesting that BTC would ride on the approval to get to $80,000. Eric Weiss, a digital asset manager, is one of them.
However, not everyone shared this optimism. Some analysts had already cast doubt on VanEck’s success in its application. For instance, Bloomberg’s Eric Balchunas had given the application a less than one percent chance of succeeding.
While painting those grim prospects, Balchunas had mentioned the SEC’s knack for denying such applications. For emphasis, he stated that the Eagles had better odds of clinching the Super Bowl. The Eagles are one of the less fancied teams in the NFL.
True to their tradition, The SEC dimmed VanEck’s hopes. The agency’s opposition to BTC-tracking ETFs is well documented. Its chair Gary Gensler has shown support for future-based BTC ETFs.
Gensler has also likened the crypto ecosystem to the wild west. Moreover, he holds that the cryptoverse is prone to abuse. That’s because it’s teaming with fraudsters and scammers.
Which way Spot ETF?
SEC’s decision has divided opinions among crypto lovers. The Blockchain Association, for instance, has taken issue with the decision. It has expressed its disagreement with the agency for refusing investors access to Spot BTC ETFs.
1/ Today, the SEC released an order disapproving @vaneck_us's proposal for a spot bitcoin ETF. We're disappointed by the SEC's continued refusal to give investors access to a spot bitcoin vehicle and strongly disagree with the decision.— Blockchain Association (@BlockchainAssn) November 12, 2021
The association has questioned the legal thinking guiding SEC’s ruling. It wondered why the regulator seems to discriminate against BTC. Furthermore, it has called for the approval of the ETF just as the SEC did the futures-based one.
Others like Twitter use @saltyboyy1 seem less bothered by the turn of events. Commenting on Jan Van Eck’s tweet, he said that that shouldn’t be a concern. He insisted that BTC didn’t need a spot ETF as it had done well without one over the last decade.
Following Friday’s decision, the fate of other such applications remains in the balance. Some analysts hold that the ruling has merely delayed the rollout of a product that many are clamoring for.