VanEck Modifies Spot Bitcoin ETF Application
Mitchell Nixon
Asset manager VanEck submitted a revised application for a spot Bitcoin exchange-traded fund (ETF) to the United States Securities and Exchange Commission (SEC) on October 27, as reported in the SEC’s database.
The revised filing indicates that a seed capital investor acquired Seed Creation Baskets in October. These baskets consist of 50,000 shares of the proposed ETF, with Bitcoin prices determined by the MarketVector Bitcoin Benchmark Rate, a cryptocurrency reference price index.
Finance attorney Scott Johnsson interprets the filing as indicating that the fund’s initial capitalisation will occur with Bitcoin, distinguishing it from other spot Bitcoin ETF proposals that use cash for capitalisation.
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A spot Bitcoin ETF represents a direct investment in Bitcoin, unlike current ETFs that primarily invest in Bitcoin futures. This spot ETF variation is anticipated to attract substantial investments from those seeking exposure to Bitcoin through traditional asset managers.
VanEck’s recent application update adds them to the growing list of asset managers revising their requests for a spot Bitcoin ETF. In September, Bitwise Asset Management also amended their application in response to SEC concerns.
In a similar vein, earlier this month, ARK Invest and 21Shares modified their joint application, providing more details about their proposed spot Bitcoin ETF, particularly regarding asset custody and valuation practices.
These frequent revisions suggest ongoing discussions and negotiations between asset managers and regulatory authorities. ETF analyst Eric Balchunas recently observed that changes in ETF proposals might reflect the SEC’s requests for issuers to address specific concerns.
“It means ARK got the SEC’s comments and has dealt with them all, and now put [the] ball back in [the] SEC’s court,” Balchunas explained on X (formerly Twitter). “[In my opinion] good sign, solid progress.”
The U.S. SEC has postponed its verdict on multiple applications for spot Bitcoin ETFs, including those from BlackRock, Invesco, Bitwise, VanEck, and Valkyrie. Observers and analysts anticipate a resolution in the coming weeks.