VanEck seeks for approval by the US SEC to launch an exchange-traded fund that will follow crypto companies, after a few unsuccessful attempts to receive one so let’s read more in today’s crypto news.
The company filed a document with the US Securities and Exchange Commission to release the digital Asset ETF and to track the price and performance of the Global Digital Asset Equity Index and also, VanEck seeks approval to launch a new Bitcoin ETF. Founded over sixty years ago, VanEck is a New-York based investment manager that has an estimated value of about $50 billion according to the 2019 data. The company made a few attempts to try and initiate a US-based ETF tracking the performance of BTC but decided now to go for a different type of crypto-related exchange-traded fund.
According to the new SEC filing, VanEck named the new ETF Digital Assets ETF and the document noted that this new fund will track as closely as possible, before all fees and expenses and the price of the MVIS Global Digital Assets Equity Index. The digital Assets Fund plans to invest about 80% of the total assets in securities which comprise its benchmark index and also tracks the performance of the digital assets segment.
VanEck explained that this segment is comprised of “companies that operate digital asset exchanges, payment gateways, mining operations, software services, equipment technology, or services to the digital asset industry, infrastructure,” or to other companies that facilitate commerce by using digital assets. these businesses generate about 50% of their revenue from crypto-related projects. The investment manager previously aimed for approval to launch a BTC ETF on a few occasions but to no avail so far.
The latest attempt came a little before the new year with the company filing an S-1 form with the SEC to establish a Bitcoin ETF dubbed the VanEck Bitcoin Trust. The company’s application said that the ETF shares will be traded on the Cboe BZX Exchange if it is approved. The SEC hasn’t provided an answer yet but the Commission has a huge history of rejecting these applications including the multiple attempts from the company. Back in 2018, the SEC rejected nine of these BTC ETFs in one day, and the SEC chair at that time Jay Clayton said that there’s still a lot work to be done.
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