VanEck decided to once again propose a Bitcoin ETF as 2020 draws to a close. The company submitted an application to the US Securities and Exchange Commission for its “VanEck Bitcoin Trust” as we can see in today’s BTC news.
The BTC ETF is seen as advantageous because it trades on the stock market in a way that some shares of popular companies like Apple and Microsoft do. VanEck already proposed one ETF in the past but withdrew its most recent application in September 2019. At that time, the company said that they are committed to an exchange-traded product. As with the previous applications, VanEck said that an ETF will trade on CBOE BZX Exchange. So far, the SEC considered most of its applications for BTC-based ETFs and rejected them all so in 2018 it also rejected nine other proposals, similar to this one.
Back in October, SEC Chairman Jay Clayton said that the agency is considering ETF proposals. However, Clayton stepped down last week and now Dalia Blass, the director of the division of investment management, will end her tenure starting in January according to the agency’s reports. Blass was the author of the 2018 letter within the SEC where concerns were expressed that Bitcoin’s market is not big enough or liquid enough to be ready for an exchange-traded product.
Despite that, VanEck proposed a Bitcoin ETF once again and according to the application, the number of outstanding shares will depend on how much BTC will be delivered to the Trust and held by the undesignated custodian.
As previously reported, The company was in the headlines of the Bitcoin circle for quite some time after it submitted the highly criticized VanEck Bitcoin Trust ETF proposal to the SEC. For some, the United States Securities Exchange Commission and its approval for a Bitcoin ETF is the major catalyst towards massive Bitcoin acceptance. It will open up the door to a huge number of investors and send the price of BTC skyrocketing. However, we cannot expect this to happen any time soon. Just yesterday, the SEC Chairman Jay Clayton told CNBC that while we are getting closer to seeing a Bitcoin ETF, there is still some work left to be done. Clayton also noted the same issues that are hovering above the unregulated exchanges and manipulation. He also added that the harder questions are the one needing answers. This, however, is not stopping the investment management giant on its way.
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