The SEC has until May 1st to accept, modify or reject VanEck’s request. VanEck’s Bitcoin ETF could still be the first to go public in the United States.
The US Securities and Exchange Commission (SEC) recently acknowledged investment manager VanEck’s request. The latter hope to be able to issue their first Bitcoin ETF (exchange-traded fund) in the United States. If the SEC approves this request, the VanEck ETF would be the first to go public on the country’s stock exchange.
VanEck applied jointly with stock market operator CBOE BZK earlier this year. However, they had not posted it on their website until just a few days ago.
The official entity has until May 1st to approve, modify or reject what VanEck states in the document. If the SEC’s regulators cannot reach an agreement, they could extend the response date by an additional 240 days.
Bitcoin ETFs are stock exchange-traded funds that track the value of the pioneering cryptocurrency. People trade them on traditional markets rather than on cryptocurrency exchanges. These investment alternatives allow the price of a share of the exchange-traded fund to fluctuate with the price of Bitcoin.
Support for Bitcoin among SEC Officials
The outlook of the approval of this ETF is highly favorable. For months now, the number of SEC officials who have shown their support for Bitcoin has grown. Among them is Gary Gensler, who is the current chairman of the SEC. Also, he has been a finance professor, a cryptocurrency initiative advisor, and a researcher on the impact of Bitcoin on finance.
According to a tweet from Documenting Bitcoin, VanEck is not the only company awaiting a response from the SEC for the approval of its ETF. Other companies in the same situation include Valkirye Digital Asset, a group managing investments in Bitcoin; NYDIG Asset Manager, a leading Bitcoin financial services and technology company; and WisdomTree Commodity Services, a sponsor and asset manager.
This is not the first time that VanEck has applied for its Bitcoin ETF to go public. They had already done it, in January and September 2019, along with blockchain-focused innovative software development and financial services company SolidX.
The SEC rejected both applications as it had done with many others from different companies interested in listing an ETF. The official agency expressed its concern about price manipulation and insufficient liquidity of the companies.
Examples of ETFs that Are Listed on Stock Exchanges
The United States is still waiting for the first Bitcoin ETF on its stock exchange. However, in the North American region, Canada already has three Bitcoin ETFs that are listed on the Toronto Stock Exchange. At the moment, this country is preparing the launch of its fourth ETF, this time based on the cryptocurrency of Ethereum Ether (ETH).
Regarding South America, Brazilian crypto asset manager Hashdex recently announced the launch of its first ETF. It is the first investment fund of this type to be born in the region. It is listed on the both Sao Paolo Stock Exchange (BOVESPA) and the Bermuda Stock Exchange (BSX).
By Alexander Salazar
