Cryptocurrency mining facilities are on the shelves at a Bitfarms facility in Saint-Hyacinthe, Quebec, Canada, on Thursday, July 26, 2018. Bitcoin amassed more than 30 percent in July, eliminating security and regulatory concerns that have affected virtual currency for much of this year.
Photographer: James MacDonald / Bloomberg
Photographer: James MacDonald / Bloomberg
For years, regulators have dashed hopes of a Bitcoin-traded fund, citing concerns from everything from market volatility and industry manipulation to thin liquidity.
The same as Bitcoin itself, issuers continue to fight.
VanEck Associates Corp. New pressure has begun to launch an ETF targeting the world’s largest digital currency, according to a filing with the US Securities and Exchange Commission on Wednesday. VanEck Bitcoin Trust would reflect the performance of MVIS CryptoCompare Bitcoin Benchmark Rate.
It’s a bold move for the New York company. Over the years there have been several applications for cryptographic tracking ETFs, and the SEC has denied them all.
VanEck can bet that a change in SEC leadership – with Jay Clayton the resignation of the president – combined with the growing adoption of Bitcoin on Wall Street have improved the chances of regulatory approval, according to analysts.
“All indications from the SEC are that a Bitcoin ETFs are still facing an uphill battle, ”said Nate Geraci, president of ETF Store, an investment consulting firm. “That VanEck is confident of depositing a Bitcoin ETF could indicate some changing views within the SEC. Clearly, a key to watch as this drama continues to unfold is who President Biden holds as President of the SEC. ”
VanEck’s filing comes in a week when Bitcoin has continued to set record highs. The world’s largest digital asset has advanced by about 300% this year, attracting the attention of some of Wall Street’s most famous investors, including Paul Tudor Jones, as well as major companies such as PayPal Holdings Inc.
While cryptocurrency fans see their rally continuing, many are also aware that its high-profile growth could attract more control. The new SEC president may take a softer line than Clayton, but President-elect Joe Biden has named Janet Yellen as secretary of the treasury. In the past, she described Bitcoin as an “extremely speculative asset” and “not a stable stock of value”.
“By filing now, it will restart the clock for a review when there are new SEC members and management,” said Todd Rosenbluth, ETF research director for CFRA Research. “However, I think the SEC has said they have concerns that need to be addressed.”
Read more: Bitcoin faces regulatory scrutiny after a record rally
According to the registration, the VanEck ETF intends to hold Bitcoin and will evaluate its shares based on the prices contributed by the stock exchanges that MV Index Solutions GmbH considers the first five exchanges for cryptocurrency.
Bitcoin traded 0.3% lower at about $ 28,800 starting at 7:49 a.m. in New York.
Such an ETF “could be considered bullish for Bitcoin because it expands the universe of investors who may be aware of Bitcoin,” said Everett Millman, a finance expert at Gainesville Coins.
(Updates to expand the offer of lede, add prices.)