Alternative Investments/Digital Assets: Fresh Bid By VanEck For A Bitcoin ETF

https://dailyalts.com/wp-content/uploads/2021/01/coins-5773208_640.jpg

Changes at its helm raise hopes for a change of heart at the SEC.

VanEck filed an application with the SEC last week for a VanEck Bitcoin Trust. The SEC has removed unmoved thus far and turned down all previous applications for launching a bitcoin ETF. VanEck itself retracted its previous ETF application in September 2019.

The SEC has cited reservations regarding bitcoin’s volatility, price manipulation, and thin volumes.

VanEck hoping to get lucky

VanEck’s bitcoin fund is dubbed the “VanEck Bitcoin Trust” and it would track the performance of the MVIS CryptoCompare Bitcoin Benchmark Rate.  (THE DAILY HODL)

Certain circumstances may have emboldened VanEck to throw in its hat in the bitcoin ETF ring yet again.

One, bitcoin has raced higher in recent months on the back of rapid adoption by corporates, fintech platforms, and institutions. As this is being written, bitcoin is trading at $30,789.50 – down from a new all-time high above $34,000.

“There’s no denying that bitcoin has proven itself as an established and top-performing asset,” said Eric Demuth, CEO of digital asset broker Bitpanda, to CNBC. “Bitcoin’s value grew over 300% last year as more institutional investors took that leap to embrace digital currencies.”

“We’re seeing it emerge as a part of the recommended allocation strategy for institutional investors and investment banks,” he added.

Greater participation by sophisticated institutional players may give the SEC some comfort that speculators would be unable to manipulate the market to the detriment of retail investors.

SEC may soon be more bitcoin-friendly

Meanwhile, SEC chairman Jay Clayton stepped down last week and this could improve the chances of the SEC’s approval of a bitcoin ETF.

Another senior SEC bitcoin naysayer, Dalia Blass, the director of the division of investment management, will also step down this month.

“That VanEck has the confidence to file for a Bitcoin ETF might indicate some shifting viewpoints within the SEC,” said Nate Geraci, president of the ETF Store, an investment advisory firm, to Bloomberg. “Clearly, a key to watch as this drama continues unfolding is who President Biden taps as SEC chair.”

A bitcoin ETF could increase the participation from retail and institutional investors that so far have been sitting on the fence.

Related Story:   Bermuda Green-Lights World’s First Bitcoin ETF

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2022/01/Bink-app-shot.png
FinTech: Lloyds To Acquire Stake In Loyalty App Bink
January 4, 2022     FinTech, News

Lloyds Banking Group (LON: LLOY), Britain’s biggest mortgage provider, will acquire a minority stake in loyalty app Bink, according to a report by Sky News for an undisclosed amount that…

https://dailyalts.com/wp-content/uploads/2022/01/Screenshot-2022-01-04-at-22-29-49-Screenshot-Pawson-2.png
Digital Assets: Coinbase CEO Armstrong Said To Have Splurged $133M On Home In LA
January 4, 2022     Digital Assets, News, Real Estate

An iconic property in Bel Air, Los Angeles, designed by internationally acclaimed English architect John Pawson changed hands last month for $133 million and the buyer was Coinbase (NASDAQ: COIN)…

https://dailyalts.com/wp-content/uploads/2022/01/47752022922_e4569a2f0e_c.jpg
Alternative Investments/ESG: VegTech Invest Launches Plant-Based Innovation & Climate ETF

VegTech Invest advisory has launched the VegTech Plant-based Innovation & Climate ETF (Ticker: EATV), its first financial product. The ETF offers exposure to publicly traded companies actively innovating with plants…

https://dailyalts.com/wp-content/uploads/2022/01/Screenshot-2022-01-04-at-18-48-26-超·世界.png
Venture Capital: Chinese AI Startup Parametrix Raises $100M, Turns Unicorn
January 4, 2022     Artificial Intelligence, News, Venture Capital

Chinese AI company Parametrix.ai has raised $100 million in a Series B round led by Sequoia China and joined by existing investors 5Y Capital and Gaorong Capital. Though the valuation…