VanEck received permission to launch a Bitcoin ETF following the launch of a similar instrument from ProShares.
VanEck disclosed this in an updated prospectus filed with the Securities and Exchange Commission (SEC) today. Trades start after the entry into force of the application, that is, approximately at the beginning of the next week.
“An actively managed exchange-traded fund fulfills its purpose by investing in traditional currency-settled bitcoin futures contracts traded on CFTC-registered exchanges such as the Chicago Mercantile Exchange (CME). The fund does not invest in bitcoin or other digital assets directly, ”the document says.
ProShares went through the same registration process and sent an updated prospectus to the SEC last Friday. Her fund began trading on the New York Stock Exchange on Tuesday, October 19. For the first time, ProShares and VanEck are allowing investors to invest in cryptocurrency on national US stock exchanges. Earlier, Bitcoin ETFs also received approval in Canada and some European countries.
In addition, options on the ProShares ETF are now available for trading. With their help, investors will be able to hedge or increase positions on the main instrument, including placing bets on its decline.
“Options are a huge event in this case,” said Erik Balchunas, an analyst with Bloomberg Intelligence. “For the first time, retail investors will be able to trade bitcoin call options under regulated financial conditions, while institutional investors will be able to use put options to hedge or short bitcoin.”
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