VanEck makes another attempt for a Bitcoin ETF approval

Asset manager VanEck has filed for a new Bitcoin exchange-traded fund (ETF). After Bitwise’s ETF rejection by the SEC last year, VanEck withdrew its application and now has filed for a new fund, called the VanEck Bitcoin Trust.

It is essential for Bitcoin ETF’s approval to have a representative price reference. SEC to date has rejected all Bitcoin ETF proposals citing fraudulent and market manipulation practices as the primary concern. To mitigate the said concern, fund managers have time-to-time revised their approach in devising appropriate reference rate.

The new VanEck’s fund differs from last year’s proposal by seeking to reflect share value based on the MVIS CryptoCompare Bitcoin Benchmark Rate. Previously VanEck proposed using data from the over-the-counter (OTC) market to calculate prices for its shares.

The VanEck ETF if approved would be traded on the Cboe BZX Exchange and its shares will be valued daily based on the reported MVIS CryptoCompare Bitcoin Benchmark Rate.

About MVIS CryptoCompare Bitcoin Benchmark Rate:

MV Index Solutions GmbH (MVIS) in partnership with CryptoCompare, launched the MVIS CryptoCompare Bitcoin Benchmark Rate index in June 2020. The index offers a robust hourly price for Bitcoin in USD. SEBA Bank AG, the Swiss bank for digital assets and cryptocurrencies was closely involved in the development of the reference rate.

The index serves as a reference rate for funds, asset managers, and exchanges building financial products on bitcoin, such as derivatives and ETPs, using a robust index. It aggregates transaction prices on the top five exchanges selected via the CryptoCompare Exchange Benchmark.

At the time of the index launch, the highest-ranked exchanges in CryptoCompare’s Exchange Benchmark included Bitstamp, Coinbase, Gemini, itBit, and Kraken. The index is based on an average of quantity weighted median prices.