VanEck’s exchange-traded fund, linked to Bitcoin futures, will begin trading on the NYSE after October 23. The first ETF, which was launched yesterday, almost reaches a billion dollars in trade volume.
A second exchange-traded fund (ETF) of futures Bitcoin is preparing to hit the US market next week.
According to a document of the US Securities and Exchange Commission (SEC), the firm VanEck, received regulatory approval to launch its ETF from Bitcoin Strategy. The New York-based asset management company is the latest to join the ETF race. Now it will add to ProShares, which was the first to receive regulatory approval and launched its Futures ETF Bitcoin this week.
According to the report, the fund VanEck will begin trading on the New York Stock Exchange (NYSE) after October 23. The negotiation will begin “as soon as possible after the effective date“, Details the SEC document, suggesting that the launch will occur on Monday, October 25.
VanEck ETF to arrive on October 25
Similar to ETF ProShares, the publicly traded fund of VanEck will be linked to Bitcoin futures, this means that it is not backed by Bitcoin physical, but by derivative contracts. The presentation of the ETF of VanEck’s Bitcoin Strategy details the investment product:
It is an actively managed exchange-traded fund (‘ETF’) that seeks to achieve its investment objective by investing, under normal circumstances, in standardized and cash-settled bitcoin futures contracts (‘Bitcoin Futures’) traded on commodity exchanges registered with the Commodity Futures Trading Commission (‘CFTC’), such as the Chicago Mercantile Exchange (the ‘CME’). The Fund does not invest directly in bitcoins or other digital assets.
“Futures contracts are financial contracts whose value depends on or is derived from the underlying reference asset.“Adds the document. “In the case of Bitcoin futures, the underlying reference asset is Bitcoin“.
On Friday, ProShares presented a post-term prospectus with the SEC, which indicated the Commission’s go-ahead for the launch of the first futures ETF of Bitcoin. VanEck filed the same type of document on Wednesday, meaning the regulator has also given the company the green light to launch its fund. It should be noted that the SEC had already postponed the verdict date for the product of VanEck on multiple occasions.
Both announcements represent an important milestone for the cryptocurrency industry in the US. For a long time, companies in the sector have been applying for ETFs backed by digital assets, but, until now, no investment product of its kind has received approval from the regulatory agency.
Success of the first Bitcoin ETF will set the tone
The first futures ETF Bitcoin, from ProShares, began trading Tuesday on the NYSE, immediately becoming one of the largest ETF debuts in U.S. history.. Within a day of its launch, the ETF has already reached a trading volume of almost one million US dollars.
At press time, each share in the fund is trading at a price of USD $ 43.42, which is 8.55% above the opening price of USD $ 40 on Tuesday. The total volume traded is 20 million shares, or almost $ 900 million.
Approvals ProShares and VanEck mark the first time that US investors can buy and trade shares of an ETF directly linked to Bitcoin. Although the United States is not the first to create something like that, and it still lags behind several countries in the race. At the beginning of the year, Canadian regulators allowed several ETFs of Bitcoin physically backed, while other publicly traded products are also available in certain European nations.
Although the US does not yet have an ETF backed by Bitcoin physical, various experts have highlighted that the move represents a crucial step towards greater institutional adoption of cryptocurrencies. They also suggest that this could be a catalyst for the emergence – and eventual approval – of other investment funds from Bitcoin.
At least 30 other ETFs tied to digital currencies are still awaiting a response. It is expected that in the coming weeks the SEC approves at least four Bitcoin futures ETFs: The Invesco Bitcoin Strategy ETF, the Valkyrie Bitcoin Strategy ETF, the Galaxy Bitcoin Strategy ETF, and the AdvisorShares Managed Bitcoin ETF.
Cryptocurrency market celebrates with new ATH
Meanwhile, amid the good news, the digital currency market has set a new record.
This Tuesday, the Total crypto market capitalization reached USD $ 2.6 trillion. The uptrend is led by Bitcoin, which has also reached a new historical price high (ATH) of USD $ 66,700. Ethereum, the second largest cryptocurrency, has also risen in recent hours and is trading very close to its all-time high at $ 4,080.
Hannah Estefanía Pérez’s version / DailyBitcoin
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