When it launches in the United States on October 25th, it will be the second of its kind.
VanEck’s Bitcoin futures ETF is set to go live on October 25. Following ProShare’s own Bitcoin futures ETF, this will be the second fund of its kind in the United States. A true Bitcoin ETF, which is linked to Bitcoin rather than Bitcoin futures, has not yet been approved in the United States.
According to a post-effective filing, VanEck has received approval for its Bitcoin futures ETF and has set a launch date.
VanEck’s ETF Will Be Available on October 25th.
The Securities and Exchange Commission of the United States has now approved the VanEck Bitcoin Strategy ETF.
The fund is permitted to begin trading after Saturday, Oct. 23, but will most likely be listed when markets open on Monday, Oct. 25. The fund will be denoted by the symbol “XBTF.”
The ETF will have a 0.65% management fee, or $0.65 for every $100 invested. According to Bloomberg, this is significantly less expensive than the 0.95 percent fee in ProShares’ competing ETF.
This ETF and others like it enable investors to purchase an asset linked to the value of Bitcoin futures on a commodity exchange. It does not permit investors to store actual Bitcoin in a cryptocurrency wallet and does not require investors to register with a retail cryptocurrency exchange.
This strategy appeals to institutional investors, who are often most at ease with traditional investment vehicles.
The ETF will be the second in the United States.
VanEck’s Bitcoin futures ETF will be the country’s second of its kind. This Tuesday, ProShares launched its own futures ETF, setting a precedent for similar funds. The event’s hype drove Bitcoin prices to a new all-time high above $66,000.
Valkyrie has proposed another similar ETF, which will most likely be approved in the near future. Meanwhile, Invesco has withdrawn its proposal for a Bitcoin futures ETF.
Despite these recent developments, the United States still lacks a true Bitcoin ETF. A true ETF would follow the price of Bitcoin rather than the price of Bitcoin futures.