Investment Firm VanEck Attempts New Bitcoin ETF Filing, Aims at Institutional Pl

[booli8]

VanEck and SolidX Partners Inc. have filed a request to list a Bitcoin-based exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), Bloomberg reports June 6.

VanEck is an NYC-based investment management firm with $38 bln under management and SolidX is a provider of blockchain software development and financial services.

According to a report by Bloomberg, the request filed with the U.S. Securities and Exchange Commission is for a fund that is physically-backed, meaning it will hold actual Bitcoins. The firms bringing the request say that this will protect against the loss or theft of the cryptocurrency.

The SEC has held a strict attitude when it comes to ETFs (exchange-traded funds) involving cryptocurrencies, rejecting the Winklevoss Bitcoin Trust ETF last year and asking about a dozen applications to be withdrawn in January.

SolidX CEO Daniel H. Gallancy said in a phone interview with Bloomberg that he thinks that “regulators are concerned right now about having an ETF that is available to retail investors,” and added that this attitude will change over time, “but right now a good place to start is with a product geared purely toward institutional investors.”

If their request is approved, Bloomberg reports that the share price of the fund will be around $200,000 in order to target institutional investors — significantly higher than most ETFs which have traditionally focused on individual investors.

The approval of a Bitcoin ETF is considered the holy grail of mainstream financial acceptance of cryptocurrency by some and major players like Huobi — the third largest cryptocurrency exchange by volume — are launching ETFs of their own.

An approved Bitcoin ETF would function as an investment vehicle that tracks the value of the underlying asset (the price of Bitcoin, in this case) and could be traded during the working hours of a stock exchange, making investments into Bitcoin simpler and less risky for mainstream customers.

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[marielbeckham]

How could I not hear anything about VanEck earlier?

[1Referee]

It will very likely come through this time.

The SEC would reject it without hesitation if it was a tool accessible to the main part of the retail world, but it isn't due to its entry point. Their reasoning is that institutions and wealthier parties are more capable of taking well thought out decisions, which is true, especially if we look at how many fools we have in the crypto world gambling their life savings and taking out mortgages and whatnot.

The most interesting part is that this ETF doesn't just track the price of the underlying asset, but it is actually backed by $200,000 worth of Bitcoin as well. In other words, every ETF share that is bought up, translates into $200,000 worth of Bitcoin being taken out of circulation.

Retail and the regulative establishments will always collide, but in this case no one cares about that. Fresh capital flowing in Bitcoin's market is all that matters.

[avikz]

The most interesting part is that this ETF doesn't just track the price of the underlying asset, but it is actually backed by $200,000 worth of Bitcoin as well. In other words, every ETF share that is bought up, translates into $200,000 worth of Bitcoin being taken out of circulation.

I doubt this as I couldn't find any evidence of this statement. $200,000 of holding for an ETF fund is too low. What I found is that the amount you mentioned, is the minimum purchase value into this ETF because the company is targeting institutional investors and not the retails ones. Please research more into this information.

So they are not going to infuse fresh capitals into bitcoin market, instead like any other ETH fund, they will just track the bitcoin's price movement. SO this kind of funds are not helping the bitcoin market at all. No capital inflows from these investors will come into bitcoin market.

[zasad@]

https://www.sec.gov/news/press-release/2024-20
"SEC Charges Van Eck Associates for Failing to Disclose Influencer’s Role in Connection with ETF Launch
FOR IMMEDIATE RELEASE
2024-20

Washington D.C., Feb. 16, 2024 —
The Securities and Exchange Commission today announced that registered investment adviser Van Eck Associates Corporation has agreed to pay a $1.75 million civil penalty to settle charges that it failed to disclose a social media influencer’s role in the launch of its new exchange-traded fund (ETF)."
___
The whole story ended with a very small fine. Someone pays billions and someone pays millions