There are already three bitcoin exchange-traded funds (ETFs) making their way on Wall Street. A new futures ETF will be launched next week by the VanEck company on the New York stock market, according to the United States Securities and Exchange Commission (SEC).
This fund adds to the ProShares, which is already operational; and Valkyrie, which, according to some sources, could start trading on Friday
In the financial product prospectus, posted on the website of the regulator, highlights the name of the ETF «VanEck Bitcoin Strategy »From New York-based management firm VanEck. This will debut on the Stock Exchange of that city on October 23. But it is Saturday, so the official launch would be Monday 25 .
As indicated by the official publication of the SEC, the negotiation of this new Bitcoin ETF on the Exchange will be given “as soon as possible after the effective date.”
The news comes one day after the first ETF of futures of BTC in the United States (US) to Wall Street. The product, from the firm ProShares, was traded for a total volume traded of almost USD 1 billion .
Likewise, it occurs a few days after the SEC extended the time for consideration of the request for an ETF, also from VanEck, the Van Eck Bitcoin Trust in BZX .
ETF details VanEck Bitcoin Strategy
One more document The 600-page length details the composition of this new fund, which is “actively managed.” It says it seeks to invest in standardized, cash settled bitcoin futures contracts, which are traded on commodity exchanges registered with the Commodity Futures Trading Commission (CFTC) and the Chicago Mercantile Exchange (CM).
The document clarifies that the new fund will not invest directly in bitcoins or other digital assets and that it will rather be an ETF, which will provide exposure to investors of BTC and will allow them to trade stocks that bet on the price of the cryptocurrency.
On the remaining assets, it is established that the ETF can invest them to “provide liquidity, serve as margin or guarantee the Fund’s investments in Bitcoin futures”. Those investments, they specify, would go towards US Treasury bonds, commercial paper, mortgage-backed securities , municipal debt securities, among others.
The new ETF is classified as a «non-diversified fund» according to the Investment Companies Act of 1940 , and therefore «you can invest more percentage of its assets in a particular issuer. ”
Similarly, they take the opportunity to warn of the volatility of the BTC and the risk that the value of the investments of the new ETF decline rapidly , “even to zero.”
Bitcoin and bitcoin futures are classes of relatively new assets and therefore the Fund’s investments in Bitcoin Futures are subject to unique and substantial risks, including the risk that the value of the Fund’s investments may decline rapidly, even to zero. Historically, bitcoin and bitcoin futures have been more volatile than traditional asset classes. You must be prepared to lose your entire investment.
Van Eck, global investment management firm.
The launch is almost a fact
Although neither on social networks nor on the VanEck website find information about the new ETF, It is almost a fact that it will begin to be negotiated on Monday, since the SEC yesterday approved a request very similar to the one presented this Wednesday by the company .
This is the ProShares Bitcoin Strategy ETF, which yesterday made its debut on the New York Stock Exchange, and caused a significant rise in the price of the leading cryptocurrency, which today surpassed the all-time high in April and is trading above USD 66,600 .
The launch of that first bitcoin futures ETF was announced by CriptoNoticias on October 15, when the SEC approved the instrument , according to a Proshares prospectus.
Approval of bitcoin futures ETFs already planned
In August and then September, SEC Chairman Gary Gensler raised the possible approval of ETFs based on Bitcoin futures. After refusing spot ETFs due to fears of market manipulation , it was opened to futures because “it is a regulated market.”
More recently, it was during the North American Conference on The Future of Asset Management, when he hinted that the regulator was monitoring new strategies, structures and business practices that There is around the cryptocurrency ecosystem.
There are still three more Bitcoin futures ETFs to be evaluated by the SEC. According to what was reported by CriptoNoticias, the Invesco Bitcoin Strategy ETF, the Galaxy Bitcoin Strategy ETF and the AdvisorShares Managed Bitcoin ETF are pending.
Global X, WisdomTree and Kryptoin also stand out, also awaiting approval from their ETFs and to whom the SEC indicated that it was “appropriate to designate a longer period within which to take action.”
Meanwhile, what is certain is that the document that takes for granted the arrival of what would be the third bitcoin ETF to the New York market, clearly boosts the presence of the leading cryptocurrency in the traditional market , as well as its price.