VanEck set to become second Bitcoin ETF in the U.S. 🚨 This article is 3 years old...
VanEck set to become second Bitcoin ETF in the U.S.
VanEck will become the second crypto ETF in the US as it is slated to begin trading under the XBTF ticker from next week.
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Updated: Jun. 30, 2023 at 10:34 pm UTC
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On the heels of ProShares historic trading of the first Bitcoin futures exchange-traded fund (ETF) on the New York Stock Exchange (NYSE) yesterday, available information has shown that VanEck has also gotten approval from the Securities and Exchange Commission (SEC).
VanEck Bitcoin ETF to begin trading next week
According to a filing made by the company, it revealed that it has gotten a green light from the regulator to begin trading under the XBTF ticker from October 23. The said date happens to be a Saturday, which means the stock market would be closed thus its trading is going to begin by the next market day which is Monday, October 25.
“The Fund is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing, under normal circumstances, in standardized, cash-settled bitcoin futures contracts traded on commodity exchanges registered with the Commodity Futures Trading Commission (’CFTC’), such as the Chicago Mercantile Exchange (the ‘CME’). The Fund does not invest in bitcoin or other digital assets directly,” the filing reads in part.
VanEck and ProShares ETF share a similarity in their inability to hold the flagship digital asset directly. However, they make up for this by providing “cautious” investors unwilling to invest directly in the market by exposing them to the coin through futures contracts.
Per our report, “Investors often use ETFs to purchase various tradable financial assets such as shares, bonds, and derivatives. These types of funds allow investors to own underlying assets in an indirect manner offering them a portion of profits and residual value in case of liquidation of funds.”
You’ll recall that we reported that ProShares recorded over $1 billion in its trading volume on its first day on the market. An indication that the crypto community had long awaited the arrival of a crypto-related ETF.
Interestingly, VanEck still has another ETF application before the SEC. The company is also applying for a spot Bitcoin ETF which would see it have a direct exposure to the digital gold. A decision on this application is expected by November 14.
Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
