VanEck’s bitcoin-linked ETF will be the third to launch in US markets while the SEC refuses to allow a spot offering.
- The third bitcoin futures ETF to launch in the U.S. will go live tomorrow.
- The VanEck Bitcoin Strategy ETF will launch on Cboe as the SEC rejected the asset manager’s spot offering last week.
- VanEck will attempt to gain market share by offering the lowest fees among its competitors.
VanEck announced that its bitcoin-linked exchange-traded fund (ETF), the VanEck Bitcoin Strategy ETF (XBTF), will go live on November 16 on Cboe after the Securities and Exchange Commission (SEC) rejected its “physically” backed offering last week.
“While a ‘physically backed’ bitcoin ETF remains a key goal, we are very pleased to be providing investors with this important tool as they build their digital asset portfolios,” said Kyle DaCruz, director of digital assets product at VanEck, per the announcement. “Cost and tax treatment are two essential considerations for investors, and we have made both front and center in the design of XBTF.”
XBTF will start trading tomorrow as the lowest cost option for U.S. investors seeking indirect exposure to bitcoin through derivatives-based offerings. VanEck’s fund will list with a net expense ratio of 0.65% on Cboe and seek capital appreciation by investing in cash-settled bitcoin futures contracts.
VanEck sought to provide investors with a product that would invest in actual bitcoin, providing more direct exposure to the asset’s price appreciation by holding it directly. However, the SEC rejected its proposal on November 12 over investor protection concerns and an alleged lack of manipulation prevention in the market.
VanEck’s derivatives-based offering received the green light for listing in late October. State Street will provide XBTF with ETF basket operations services, custody of the ETF shares, fund accounting, order-taking, and act as its transfer agent.
BITO was the first bitcoin-linked ETF to go live in the U.S. and began trading on October 19. The fund became the fastest ETF ever to reach $1 billion in assets, taking the record from gold ETF GLD, which in 2004 reached the mark within three days. Valkyrie launched America’s second bitcoin futures ETF on October 22.