VanEck’s asset management business revealed intentions to establish the first-ever Exchange-Traded Fund connected to Bitcoin futures in the US public markets, only days after ProShares launched the first-ever Exchange-Traded Fund linked to Bitcoin futures the US public markets.
VanEck disclosed that it had received clearance from the US Securities and Exchange Commission to launch its Bitcoin-linked ETF in a post-effective filing with the market regulator on Wednesday, October 20.
The SEC has given VanEck permission to open its fund after October 23, which is a Saturday, indicating possible start date of Monday, October 25.
Only cash-settled Bitcoin futures sold on exchanges licensed with the Commodity Futures Trading Commission, such as the CME Group, will be included in VanEck’s Bitcoin futures ETF.
The fund is an actively managed exchange-traded fund (‘ETF’) that aims to meet its investment objective by investing in standardized, cash-settled bitcoin futures contracts (‘Bitcoin Futures’) traded on commodity exchanges registered with the Commodity Futures Trading Commission (‘CFTC’), such as the Chicago Mercantile Exchange (‘CME’). The fund does not invest in bitcoin or other digital assets directly.
VanEck’s Bitcoin strategy ETF, which will trade under the ticker symbol “XBTF,” will begin trading on the Cboe BZX platform after October 23.
The VanEck product will let investors trade shares that reflect contracts betting on the Bitcoin price, exposing them to the world’s largest crypto asset.
Bitcoin investment is on the rise
Following the introduction of the ProShares Bitcoin strategy ETF by VanEck on Tuesday, investors will have another futures-based product to choose from.
The US Securities and Exchange Commission (SEC) approved the first-ever Bitcoin futures ETF last week, and it began trading this week, marking the biggest ETF debut in US history.
On Tuesday, October 19, shares of ProShares Bitcoin futures ETF began trading on the New York Stock Exchange under the ticker code “BITO” ProShares, with sources indicating that the ETF was acquired $570 million in assets on its first day of trading. According to Bloomberg statistics, the ProShares Bitcoin ETF was the second-most frequently traded fund, with almost $1 billion in turnover and more than 24 million shares moved.
With the approvals of ProShares and VanEck’s products, US investors will be able to buy and sell shares of an ETF that is directly linked to Bitcoin for the first time. As a result, the United States joins Canada and a few other European nations in allowing Bitcoin ETFs and other exchange-traded products to be traded.