Asset manager VanEck has filed with the US Securities and Exchange Commission (SEC) a new application to launch a Bitcoin-based exchange-traded fund (ETF), senior ETF analyst at Bloomberg Eric Balchunas said.
A new application to create a "strategic Bitcoin ETF" has been filed under the provisions of the Investment Company Act of 1940. Previous applications were made primarily on the basis of the 1930s provisions.
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SEC Chairman Gary Gensler recently announced the 1940 law provides much better protections for investors, so companies relying on it will have a better chance of having their proposals approved:
"Given these important protections, I look forward to the staff’s review of such filings, particularly if those are limited to these CME-traded Bitcoin futures."
As noted by Balchunas, VanEck's ETF will be based on Bitcoin futures and other Bitcoin funds, such as ETFs that are already listed in Canada. VanEck will not invest directly in BTC or other digital assets.
The first time VanEck filed a Bitcoin ETF application was back in 2017.