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VanEck has received regulatory approval to launch its Bitcoin futures exchange-traded fund (ETF) next week, as evidenced by the filing with the Securities and Exchange Commission (SEC) after the entry into force.
The company is the latest to join the Bitcoin-related ETF race in the US. Having received the green light from the regulator, it will be able to compete with the ProShares offer, the bidding for which began yesterday.
The Securities and Exchange Commission has given permission to VanEck Bitcoin Strategy ETF to start trading after Saturday, October 23, under the ticker “XBTF”, which means that the fund is likely to start working on Monday, October 25, the first day of the market opening next week.
“The fund is an actively managed exchange traded fund that seeks to achieve its investment objective by investing, under normal circumstances, in standardized Bitcoin futures contracts with cash settlements traded on commodity exchanges registered by the Commodity Futures Trading Commission (CFTC)., for example, the Chicago Mercantile Exchange (CME),” according to the filing. “The fund does not invest directly in Bitcoin or other digital assets.”
Yesterday, the Securities and Exchange Commission allowed the first BTC-related ETF to start operating in the US. The ProShares Bitcoin Strategy ETF debuted on Tuesday and raised more than $1 billion in trading volume, becoming the second largest ETF launch in the history of U.S. markets.
Although neither VanEck nor ProShares will contain real BTC, they aim to provide interested investors with access to Bitcoin through futures contracts. The ETF aims to make it easier for retail and institutional investors to access the underlying asset without having to buy and store it themselves.
However, this leads to some compromises that investors should be aware of. Firstly, it means that those who buy Bitcoin ETF futures shares will not be able to hold actual BTC.
This may seem like an insignificant nuance to some investors, but in the long run it is crucial if Bitcoin fulfills its purpose and displaces the current financial system.
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