By George Ward
The US Securities and Exchange Commission (SEC) has been reluctant to approve the numerous Bitcoin exchange-traded funds (ETF) applications. Hence, major asset managers such as BlackRock, Bitwise, and VanEck have resubmitted modified versions of their filings.
Filing A Re-amended ETF
VanEck, an asset manager, took a new step toward introducing a Bitcoin ETF by filing its fifth amended application. This change, recorded in the US Securities and Exchange Commission (SEC) database via an updated S-1 Form, outlines key modifications to the VanEck Bitcoin Trust’s previous application.
The asset manager’s spot Bitcoin ETF is a financial tool designed for individuals seeking investment exposure to the price movement of Bitcoin. If approved, a Bitcoin spot ETF would provide investors with a simpler way to gain indirect exposure to Bitcoin investment.
The product will shield investors from the risks and security concerns of directly owning the crypto asset. Furthermore, this investment vehicle aligns with the growing interest in cryptocurrency among traditional investors.
These investors are looking for regulated and accessible avenues to explore the crypto market’s potential and allow them to purchase shares linked to Bitcoin’s price trajectory. Meanwhile, the VanEck ETF iteration is expected to be listed under “HODL,” a term coined by the crypto community. “HODL” is a play on the word “hold.”
This phrase embodies most Bitcoin enthusiasts’ preferred strategy, which entails acquiring the digital asset and steadfastly holding it without succumbing to the urge to sell, regardless of market fluctuations.
Crypto Community Reacts to VanEck’s ‘HODL’ Ticker
Meanwhile, the ticker symbol VanEck chose for its spot Bitcoin ETF, has attracted the attention of analysts on the X social media platform. According to Nate Geraci, president of The ETF Store, individuals familiar with virtual currencies will likely recognize the symbol, but “boomers” may appear lost.
He opined that this ticker could avoid negative attention on financial statements, particularly given the growing advocacy for “hodling” across various asset categories. Bloomberg Intelligence’s ETF analyst, Eric Balchunas, noted the departure from traditional, more conservative choices preferred by asset management giants like BlackRock and Fidelity.
He commended VanEck’s unconventional approach to selecting a ticker symbol, stating that it is innovative in the ETF landscape.
The Push For Regulatory Approval
Other major players, such as BlackRock and Bitwise, have made significant strides in pursuing spot Bitcoin ETFs, submitting amended S-1 filings to the US regulator. This coordinated action by the asset management behemoths demonstrates the industry’s ongoing interest and commitment to cryptocurrency investment.
BlackRock’s most recent filing includes language highlighting enhanced monitoring of unusual price movements and strengthened anti-money laundering measures. The updates and an audited statement from PricewaterhouseCoopers show a commitment to compliance and security measures.
The filing emphasizes a commitment to robust Know Your Customer (KYC) processes, elevating security and due diligence standards in the crypto-based ETFs realm. Moreover, these amended filings provide additional proof of ongoing discussions between ETF issuers and the SEC.
Popular analyst, James Seyffart, points to a pattern in which the SEC provides similar guidance to multiple applicants. This pattern suggests a collaborative approach to addressing regulatory concerns.
It also implies a potential resolution that could herald the debut of the first spot Bitcoin ETF in the United States.