In its pursuit of launching a spot bitcoin exchange-traded fund (ETF), VanEck filed an amended application with the Securities and Exchange Commission (SEC) in the US.
The amended filing comes with a notable aspect, as it revealed that back in October, the Seed Creation Baskets for the VanEck Bitcoin Trust was acquired by an unnamed seed investor.
There are 50,000 shares of the proposed spot Bitcoin ETF in the Seed Creation Baskets and they were purchased using Bitcoin.
The filing submitted on Friday, October 27th, revealed that the valuation of the Bitcoin holdings was determined through the MarketVector Benchmark Rate.
This index is often used as a reference price for the original cryptocurrency.
General partner at Van Buren Capital and a financial attorney, Scott Johnsson, noted that the language in the amended filing from VanEck was similar to the language used recently in the amended filing that BlackRock had submitted for a spot Bitcoin ETF.
He went on to say that it did not come as a surprise because the same lawyers were representing the two companies at Clifford Chance.
However, the filing from VanEck suggests that rather than seeding the product with cash, it will incorporate Bitcoin directly.
But, Johnsson did add that people should not read too much into it because it could just be a case of lazy lawyering and not suggestive of any actual intent.
Just like the filing from BlackRock, the amended application from VanEck also highlights a variety of factors that could have an impact on the ETF shares’ value.
These include a fall or rise in the global supply of Bitcoin, the overall market sentiment towards the crypto industry, forks in BTC’s network, and the trading activity taking place on crypto exchanges.
Similarly, the rise in competition from other payment services and digital assets can also play a role.
It should be noted that VanEck is not the only firm to have amended its spot Bitcoin ETF to address regulatory concerns.
At the end of September, amendments were also made by Bitwise Asset Management, as it added fresh arguments.
According to the firm, these arguments invalidate the explanation of the regulator for depriving the US market of the said product.
Earlier this month, applications were also amended by 21Shares and ARK Invest, as they added further information about their proposed ETF.
BlackRock also joined the list of companies amending their applications, as it also amended its own for a spot Bitcoin ETF.
The financial product is aimed at providing investors exposure to Bitcoin without ever having to hold the asset.
This product would track the price of Bitcoin in the market in real-time which makes it attractive to investors who want to have direct crypto exposure.
However, the SEC has been turning down applications for a spot Bitcoin ETF for years due to market manipulation, regulatory oversight, and investor protection concerns.
But, many are of the opinion that the tide is now turning and the SEC will soon give approval for a spot Bitcoin ETF.