Previously VanEck Bitcoin ETF was filed to list on Cboe, a Chicago exchange operator, in 2018. The application was pulled during the partial U.S. federal government shutdown, a few weeks before it would have faced a verdict from the Securities and Exchange Commission on its listing.
VanEck CEO Jan VanEck said in an interview with CNBC the firm would refile once the SEC returned to work.
The firm made good on that promise, refiling the application — but not before making a few changes. This time around VanECK made some slight changes to their filing. The new application is about 40 pages longer than their previous one.
Countering the SEC’s concerns about a Bitcoin ETF
The additions aim to counter the SEC’s concerns about a bitcoin ETF, including that the underlying spot market is not properly regulated or monitored to catch nefarious activity.
“Of particular interest is the approval order for the Breakwave Dry Bulk Shipping ETF (the “Shipping Futures ETF”) which is designed to provide exposure to the daily change in the price of dry bulk freight futures: an ETP that provides exposure to a unique underlying instrument with no direct precedent for approval,” VanEck wrote.
“The Approval Order includes no additional analysis that specifically discusses whether the markets with which the listing exchange will be able to share surveillance information related to freight futures, which the Shipping Futures ETF will invest substantially all of its assets in,19 are significant regulated markets,” the firm added.
The firm then compared the liquidity of bitcoin futures versus the freight futures. The SEC has cited the lack of liquidity in bitcoin markets as one of the reasons it is not ready for an ETF.
“For instance, the notional average daily volume for Bitcoin Futures in the third quarter and fourth quarter of 2018 were more than $150 million and $121 million, respectively, as compared to the estimate of $50-100 million per day for freight futures,” VanEck noted.
For those that want to review the entire filing, you can visit this page.