VanEck Proposes ETF for Bitcoin, Once Again

VanEck Proposes ETF for Bitcoin, Once Again
Securities and Exchange Commission, SEC, Building in Washington DC.
(Getty Images)

As 2020 draws to a close, one of the prior proponents for an exchange traded fund (ETF) based on Bitcoin is trying again: VanEck has to the U.S. Securities and Exchange Commission (SEC) for the “VanEck Bitcoin Trust.” 

An ETF is seen as advantageous because it trades on the stock market much like shares in popular companies like Apple and Microsoft do. 

VanEck has previously proposed ETFs before, withdrawing its in September 2019. At the time the company said it remained committed to an exchange traded product. 

As it has in previous applications, VanEck said this ETF would trade on the Cboe BZX Exchange. 

So far, the SEC has considered many applications for bitcoin-based ETFs and rejected them all. In August 2018, it rejected on the same day.

In October, SEC Chairman Jay Clayton said the agency was to considering ETF proposals.

Chairman Clayton stepped down officially . Dalia Blass, the director of the division of investment management, will also end her tenure in January, . Blass was the author of within the SEC expressing concerns that the market was not large enough or liquid enough to be ready for an exchange traded product.

According to the application, the number of the outstanding shares will depend on how much BTC is delivered to the Trust and held by an, as yet, undesignated custodian.

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