VanEck asset management agency announced plans to launch a second Bitcoin ETF product. A few days after ProShares debuted the first-ever Exchange-Traded Fund linked to Bitcoin futures in the US public markets,
Based on a post-effective filing with the US Securities and Exchange Commission on Wednesday, October 20, VanEck revealed that it had secured approval from the market regulator to launch its Bitcoin-linked ETF which can be the second Bitcoin ETF
The SEC has given VanEck the greenlight to launch its fund after October 23, on a Saturday, and therefore that factors to the potential starting date of Monday, October 25.
VanEck’s Bitcoin futures ETF will only invest in cash-settled Bitcoin futures traded on exchanges registered with the Commodity Futures Trading Commission like the CME Group.
In line with SEC’s filing on Wednesday, “the fund is an actively managed exchange-traded fund (’ETF’) that seeks to attain its funding goal by investing, under regular circumstances, in standardized, cash-settled bitcoin futures contracts (’Bitcoin Futures’) traded on commodity exchanges registered with the Commodity Futures Trading Commission (’CFTC’), such because the Chicago Mercantile Exchange (the ‘CME’). The fund doesn’t invest in bitcoin or other digital assets directly.”
VanEck Bitcoin strategy ETF, which can carry the ticker image “XBTF”, is ready to start trading after October 23 on the Cboe BZX exchange.
VanEck product will give traders publicity to the world’s largest crypto asset by permitting them to trade shares that signify contracts betting at Bitcoin price.
Bitcoin Investing Rises
VanEck is therefore set to present traders another choice of a futures-based product after Tuesday’s launch of the ProShares Bitcoin strategy ETF.
Last week, the US SEC officially permitted the launch of what’s considered the first-ever Bitcoin futures ETF, which started trading this week, instantly becoming the largest ETF debut in US history.
Shares of ProShares Bitcoin futures ETF started trading on the New York Stock Exchange on Tuesday, October 19, beneath the ticker symbol “BITO” ProShares, with reviews displaying that the ETF was bought $570 million in assets on its launch day. The ProShares Bitcoin ETF was the second-most closely traded fund, landing turnover of just about $1 billion with more than 24 million shares exchanged, in response to Bloomberg data.
The approvals of ProShares and VanEck’s merchandise mark the primary time US investors can purchase and trade shares of an ETF directly tied to Bitcoin. The US follows the footsteps of Canada and some other European nations, which have already allowed trading of Bitcoin ETFs and other exchange-traded products.
Source: Blockchain News