VanEck, a renowned New York-based asset manager specializing in ETFs, has recently updated its application for the VanEck Bitcoin Trust ETF. The company, known for its expertise in managing ETFs and its early interest in the crypto market, is making waves with its unique approach.
According to legal expert Scott Johnsson, VanEck’s approach stands out due to its potential use of Bitcoin for seeding the fund, rather than traditional dollars. This distinctive move involves using existing Bitcoin holdings as collateral, unlike other ETFs that typically acquire Bitcoin from the market using fiat currency. Notably, an investor already bought 50,000 ETF shares using Bitcoin in what’s known as a “Seed Creation Basket.”
Anticipation surrounds the approval of VanEck’s Bitcoin ETF by the Securities and Exchange Commission (SEC). Market expectations indicate a high probability of approval, likely to be granted collectively to several Bitcoin ETF applications. The approval process is estimated to conclude by January 10, with the SEC historically taking its time, possibly leading to a decision in late December or early January.
VanEck’s extensive experience in the crypto market, including its successful launch of a Bitcoin ETN in European markets, adds weight to its forthcoming Bitcoin ETF launch in the US. The company’s strong focus on crypto assets is evident through its diverse offerings, spanning Ethereum, Solana, Polygon, Algorand, Chainlink, and Avalanche, alongside its pioneering gold ETF.
The significance of Bitcoin in the financial realm, surpassing other cryptocurrencies and traditional assets, has piqued the interest of prominent financial institutions, including BlackRock. VanEck’s Bitcoin ETN, boasting significantly greater market capitalization compared to its counterparts on other crypto assets, exemplifies Bitcoin’s unparalleled status in the market. As Bitcoin’s market capitalization surpasses that of all other cryptocurrencies combined, including Ethereum and stablecoins, its unique role continues to captivate both traditional and crypto investors alike.
