Investment management firm VanEck has filed yet another application with the U.S. SEC, this time for a Bitcoin Strategy Fund – a type of bitcoin futures mutual fund. This fund offers investment in bitcoin futures contracts in addition to pooled investment vehicles and exchange-traded products with exposure to the cryptocurrency. VanEck emphasized that the Bitcoin Strategy Fund does not invest in bitcoin directly.
VanEck files a new bitcoin futures mutual fund with the SEC.
According to the filing, the proposed fund will invest in “certain” bitcoin futures through a subsidiary of the fund that falls under the laws of the Cayman Islands. The fund’s investment in the subsidiary will not exceed 25% of the value of the fund’s total assets at each quarter-end of the fund’s fiscal year. Additionally, the fund may invest in restricted securities — securities acquired in unregistered, private sales from an issuing company — including private investment funds. Bitcoin has gained a lot of mainstream exposure this year as it saw more and more institutions invest in the leading cryptocurrency.
SEC continues to delay decision on BTC ETF approval.
U.S. SEC remains hesitant to approve anything that offers direct exposure to the cryptocurrency for fear of investor risk, which is why the point about not investing directly in bitcoin is important for VanEck. This has been one of the key talking points in the ongoing review of ETFs, of which there are now several that the SEC has to deal with. The application joins a list of others by VanEck, which is going all-in with its hope that the SEC will approve one soon. Earlier, the crypto community was hoping that with the change in the U.S. administration, a BTC ETF would be approved, but it did not happen.