New York-based asset management firm VanEck has filed a new application with the Securities and Exchange Commission (SEC) for its spot market Bitcoin ETF.
A Bitcoin ETF would allow more traditional investors uncomfortable directly managing cryptocurrencies to gain exposure to the asset.
In November 2021, the SEC rejected VanEck’s previous Bitcoin ETF application due to concerns surrounding “fraud and manipulation” of the Bitcoin spot market.
The SEC has only approved futures-based Bitcoin ETFs, rejecting all spot market Bitcoin applications to cross its desk.
A spot market Bitcoin ETF provides exposure to Bitcoin, whereas the futures-based Bitcoin ETF is based on a Bitcoin futures contract. Futures-based ETFs are also typically more expensive than their spot market-based counterparts.
On Wednesday, the SEC rejected Grayscale’s Bitcoin ETF application after nearly eight months of prolonged delay. Following its rejection, Grayscale has moved to the court against SEC.
Cathie Wood’s Ark Invest and Bitwise have also faced rejections from the SEC for their Bitcoin ETF applications.
Grayscale Bitcoin product hits massive discount
Currently, the closest product American investors have to a Bitcoin ETF is Grayscale’s Bitcoin Trust (GBTC).
Unfortunately, the price of GBTC is currently trading at a massive discount of 30.74% to the spot price of Bitcoin. Yesterday, this figure was as high as 35%.
To…
