VanEck received permission to launch a bitcoin ETF following the launch of a similar tool from ProShares.
VanEck disclosed this information in an updated prospectus filed today with the Securities and Exchange Commission (SEC). Bidding starts after the entry into force of the application, that is, approximately at the beginning of next week.
"An actively managed exchange-traded fund fulfills its purpose by investing in bitcoin futures contracts calculated in traditional currency, traded on exchanges registered with the Commission on Futures Trading (CFTC), such as the Chicago Mercantile Exchange (CME). The fund does not invest in bitcoin or other digital assets directly," the document says.
The company ProShares went through the same registration procedure, which sent an updated prospectus to the SEC last Friday. Her fund started trading on the New York Stock Exchange on Tuesday, October 19. For the first time, ProShares and VanEck funds allow investors to invest in cryptocurrency on the US national stock exchanges. Previously, bitcoin ETFs were also approved in Canada and some European countries.
In addition, options on the ProShares ETF have become available for trading since today. With their help, investors will be able to hedge or increase positions on the main instrument, including betting on its reduction.
"Options are a huge event in this case—" said Bloomberg Intelligence analyst Eric Balchunas. "Retail investors will be able to trade bitcoin call options under regulated financial conditions for the first time, while institutional investors will be able to use put options to hedge or open short positions on bitcoin."