Wealth Manager Vaneck Files Application for an Ethereum ETF, Aims for Cboe BZX Listing – Finance Bitcoin News

The ~$3.6 billion Vaneck Vectors Bitcoin Strategy ETF is currently the only Bitcoin-based ETF available to U.S. investors and trades on the OTCQX exchange. It is an actively managed fund that seeks to achieve its investment objective by investing 90% of its total assets in U.S. exchange-traded bitcoin related instruments (the “Underlying Instruments”) and 10% of its total assets in cash. The fund will not invest directly in bitcoin.

While the SEC has rejected several bitcoin ETF proposals, including the Winklevoss Bitcoin ETF, this does not mean that it is entirely against the idea or cryptocurrency. The U.S. regulator has previously turned down applications that it felt did not meet the standards for approval as a result of the concern of retail investors. The rejection of previous bitcoin ETFs hasn’t come as a surprise. The SEC has expressed concerns about bitcoin futures and other cryptocurrency products.

Public documents show that asset manager Vanek has applied to set up an exchange-traded fund (ETF) based on Etherium. Vaneck Digital Assets’ Form S-1 was filed with the Securities and Exchange Commission (SEC) on 7. The filing in May, and the company’s bitcoin-based ETF is still pending.

Pending the approval of his bitcoin ETF, Vanek has filed an application with the SEC to launch an Ethereumfund.

ETF and mutual fund manager Vaneck and its digital asset management subsidiary filed an application with the US Securities and Exchange Commission on Friday to create an ETF based on Etherium. The filing states that the ETF will be called Vaneck Ethereum Trust, and the company hopes to be listed on the Cboe BZX exchange. So far, the SEC has not approved any applications for bitcoin-based ETFs in the U.S., but applications for 2021 are pouring in, including for Vanek’s bitcoin ETF.

Cboe has also been designated as the exchange where Vanek’s BTC application will be listed. The trust will hold Ethereum (ETH), as the value of the shares will be based on MVIS Cryptocompare’s Ethereum reference price. MVIS or MV Index Solutions GmbH is a subsidiary of Vaneck Digital Assets. If an ETF based on ETH is approved, small and institutional investors will be able to access ETH.

The trust provides direct exposure to ETH, and the trust’s shares are priced daily based on a group of carefully evaluated exchanges selected by MVIS, Vaneck said in a statement. The asset manager adds:

The Trust allows investors to access the [Ethereum] market through a traditional brokerage account without the potential technical barriers to entry or risks associated with owning or directly transferring [Ethereum], mining it or purchasing it on an exchange, as described above.

Therisk series mentions the 2017 highs and the upcomingcrypto winter.

In the risk paragraph of the S-1, Vanek mentions that ETH has experienced extreme volatility recently and could continue to do so. The company cites the bull run of 2017 and says many observers called the rise in ETH a bubble.

These increases were followed by sharp declines in ETH trading prices throughout 2018, and ETH prices have remained depressed in 2019, Vanek noted.

ETH may still have a bubble, Vanek said on the record, and it may have another bubble phase. The Ethereum market has exploded in recent months, reaching an all-time high of $3,575 per unit on Thursday. Over the past 12 months, the blockchain asset Ether has gained 1,572% against the US dollar.

What do you think of the Vaneck Ethereum ETF application? Let us know what you think in the comments below.

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bitcoin etf, Cboe BZX, cryptoassets, ETF, ETF ethereum, exchange traded fund, exposure, filing, mvis, regulation, regulators, risk, S-1, SEC, US SEC, vaneck, Vaneck Digital Assets

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