VanEck has revised its application for a spot Bitcoin exchange-traded fund (ETF), submitting the amended proposal to the United States Securities and Exchange Commission (SEC) on October 27, as reported in the SEC’s database.
The updated filing highlights that a seed capital investor acquired Seed Creation Baskets, comprising 50,000 shares of the proposed ETF, using Bitcoin. The Bitcoin prices are determined by the MarketVector Bitcoin Benchmark Rate, an index serving as a reference for the cryptocurrency’s price. Notably, this filing suggests a departure from other spot Bitcoin ETF proposals, as the seeding will be conducted with Bitcoin rather than cash, according to finance lawyer Scott Johnsson.
A spot Bitcoin ETF entails a direct investment in Bitcoin, unlike current ETFs that invest in Bitcoin futures. The anticipated result of this spot version is a significant influx of investments from individuals seeking exposure to Bitcoin through conventional asset managers.
The revision move by VanEck is part of a broader trend among asset managers adjusting their applications for spot Bitcoin ETFs. VanEck’s recent filing aligns with similar updates from other asset managers, such as Bitwise Asset Management, which responded to SEC objections with an amended application in September.
In the same vein, ARK Invest and 21Shares recently modified their joint application, providing additional details about their proposed spot Bitcoin ETF, including practices related to asset custody and valuation. Observers interpret this wave of amended filings as a potential indicator of progressing negotiations between asset managers and regulators. ETF analyst Eric Balchunas suggests that changes in ETF proposals may address SEC concerns, representing positive progress in the regulatory approval process.
The SEC has delayed decisions on various spot Bitcoin ETF proposals, including those from BlackRock, Invesco, Bitwise, VanEck, and Valkyrie. Market participants and analysts anticipate a decision within the coming weeks.