VanEck's Bitcoin futures ETF to debut tomorrow on Chicago exchange, CBOE
VanEck's Bitcoin futures ETF to debut tomorrow on Chicago exchange, CBOE By Hannah Perez

VanEck’s futures

ETF will launch on Tuesday, Nov. 16; shortly after the SEC rejected the firm’s spot ETF proposal.

***

VanEck’ s Bitcoin futures exchange-traded fund (ETF) will list tomorrow on the Chicago Board Options Exchange

(CBOE). This was announced by the firm in a press release Monday.

VanEck today announced the anticipated launch of the VanEck Bitcoin Strategy ETF (XBTF) , an actively managed ETF that seeks capital appreciation by investing in standardized, cash-settled bitcoin futures contracts. XBTF is expected to be listed on CBOE on November 16, 2021.

VanEck’ s product is touted as the lowest-cost Bitcoin-linked ETF, as its net expense ratio is lower than the competition. It’s also structured as a C-Corp, which the firm says can provide a “more tax-efficient experience

” for those holding assets for the long term.

XBTF will invest primarily in bitcoin futures from CME, the world’s largest financial derivatives exchange. Two other ETFs based on CME bitcoin

futures have already launched in the U.S. market.

VanEck Still Hopes for a Physical Bitcoin ETF

The news about VanEck’ s Bitcoin ETF launch comes shortly after the U.S. Securities and Exchange Commission (SEC) rejected the firm’s proposal to create a fund of its kind backed by spot bitcoins

.

As DiarioBitcoin had been outlining, the SEC extended its decision deadline by as much as possible, solicited

and continually pushing the date forward, before finally denying VanEck’ s financial product proposal last week. The verdict placed VanEck’s proposed ETF of Bitcoin VanEck’ s physical ETF proposal among the first to receive a response from the regulator.

See also  "Bitcoin at USD 500k is possible in the next 9 months," says renowned analyst

Digital currency enthusiasts are still waiting for the launch of the first physical ETF in the U.S., although the regulator’s Bitcoin physical ETF in the U.S., although the country’s regulator has been reluctant to accept such a fund.

The SEC chairman has previously said he is more interested in reviewing applications for bitcoin futures-backed products. He has particularly singled out those ETFs seeking registration under the higher investor protection standards of the Investment Company Act of 1940, rather than the disclosure-focused 1933 Act, under which most spot product offerings, including VanEck’s, proposed to be regulated.

VanEck was the first asset manager to file an application to launch a traded product on the futures market of Bitcoin. However, and despite the approval of a futures ETF, Kyle DaCruz, VanEck’ s director of digital asset products, said the spot ETF remains the last hope.

While a ‘physically-backed’ bitcoin ETF remains a key objective, we are excited to provide investors with this important tool as they build their digital asset portfolios.

Recommended Reading

Sources: BusinessWire, The Block, archive

Version by Hannah Estefania Perez / BitcoinDaily

Image from Unsplash