Cryptocurrency mining platforms sit backstage at a Bitfarms facility in Saint-Hyacinthe, Quebec, Canada, on Thursday, July 26, 2018. Bitcoin has gathered more than 30% in July, leaving concerns aside regulators and security that have suffered from virtual currency for much of this year.
Photographer: James MacDonald / Bloomberg
Photographer: James MacDonald / Bloomberg
For years, regulators have dashed hopes for a fund traded on Bitcoin exchanges and cited concerns about everything from market volatility and industry manipulation to fine liquidity.
The same that Bitcoin itself, issuers are still fighting.
VanEck Associates Corp. has launched a new impetus to launch an ETF that tracks the world’s largest digital currency, it presented on Wednesday to the U.S. Securities and Exchange Commission. The VanEck Bitcoin Trust would reflect the performance of the Bitcoin MVIS CryptoCompare benchmark rate.
It’s a bold move for the New York-based firm. Over the years, there have been multiple applications for cryptographic tracking ETFs and the SEC has denied them all.
VanEck may be betting on a change in SEC leadership, with Jay Clayton resigning as president, combined with the growing adoption of Bitcoin on Wall Street, has improved the odds of regulatory approval, analysts say.
“All that the SEC indicates is that a bitcoin The ETF is still facing a tough battle, ”said Nate Geraci, president of the ETF Store, an investment advisory firm. “Having VanEck confident of presenting a Bitcoin ETF could indicate some changing views in the SEC. Clearly, one of the keys to seeing how this drama continues to unfold is who President Biden is chairing as president. of the SEC “.
VanEck’s presentation comes in a week in which Bitcoin has continued to set record highs. The world’s largest digital asset has advanced about 300% this year, drawing the attention of some of Wall Street’s most famous investors, including Paul Tudor Jones, as well as major companies like PayPal Holdings Inc.
While cryptography enthusiasts see their concentration continuing, many are also aware that their high-profile wave may attract more control. The new SEC president may have a smoother line than Clayton, but President-elect Joe Biden has appointed Janet Yellen as Secretary of the Treasury. In the past, he described Bitcoin as a “highly speculative asset” and “not a stable asset value”.
“By presenting it now, the clock will be reset to do a review when there will be new members and leadership from the SEC,” said Todd Rosenbluth, research director of the CFRA Research ETF. “However, I think the SEC has made it clear that they have concerns that need to be overcome.”
Read more: Bitcoin faces regulatory scrutiny after a record rally
According to the archive, VanEck’s ETF plans to hold Bitcoin and will value its shares based on the prices provided by the exchanges that MV Index Solutions GmbH believes represent the top five cryptocurrency exchanges.
Bitcoin was trading 0.3% below about $ 28,800 at 7:49 a.m. in New York.
Such an ETF “could be taken as bullish for Bitcoin because it expands the universe of investors who might be aware of Bitcoin,” said Everett Millman, a finance expert at Gainesville Coins.
(Updates to expand the budget, add prices.)