VanEck wants to develop a fund for Bitcoin Futures (BTC)

Thu 24 Jun 2021 ▪ 19h00 ▪ 3 min read — by Geoffrey Smith

US-based investment firm VanEck, which specialises in ETFs, is seeking to set up a Bitcoin futures investment fund. According to the application it filed with the SEC on Monday, 21st June 2021, VanEck is looking to invest in Bitcoin Futures contracts through its “Bitcoin Strategy Fund”. The document also suggests the firm is planning to deploy an Exchange Traded Product (ETP) tied to BTC.

Futures only, zero spot exposure

“The Fund seeks to achieve its investment objective by investing, under normal circumstances, in Bitcoin futures contracts, as well as pooled investment vehicles and exchange-traded products that provide exposure to Bitcoin,” the document said. The application also states that “the Fund will not invest in, or seek to gain exposure to the current ‘spot’ or spot price of Bitcoin”.

The fact that VanEck does not invest directly in Bitcoin could prompt the SEC to accelerate its decision as the US regulator has been slow to deliver its decision on several VanEck ETF requests submitted late 2020. The Bitcoin Strategy Fund’s portfolio will be managed by Gregory Krenzer. He has been with VanEck since 1994 and has over 25 years of financial market experience.

This is not VanEck’s first foray into cryptocurrency ETFs. While the United States SEC has been dragging its decision on the creation of a Bitcoin ETF, in Europe the situation is different. Since May, citizens of fifteen European countries have access to VanEck Vectors Bitcoin and VanEck Vectors Ethereum, two ETNs – a type of bond traded on a stock exchange, fully collateralised, with each ETN share representing the share of Bitcoin or Ethereum.

VanEck also caused a stir late last year by releasing a particularly optimistic report for BTC, comparing the asset’s volatility to that of the world’s largest companies, with one advantage going for Bitcoin: its profitability goes above and beyond that of traditional assets. The fund encouraged professional and retail investors alike to buy BTC. Founded in 1955, VanEck specialises in providing convenient investment vehicles. In addition to indices of cryptocurrencies and gold, it also offers ETFs for video gaming and eSports markets.

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Geoffrey Smith avatar
Geoffrey Smith

Si les « Smart contracts », le « proof-of-work », la « Defi » ou les « pools de liquidités » constituent pour vous de nébuleux concepts, c’est ici que j’interviens. Et s’ils vous paraissent familiers, j’ai également ma carte à jouer ! Crypto-enthousiaste de la première heure, j’étudie avec intérêt les avancées des technologies liées à la blockchain. Mon leitmotiv ? Transmettre au lecteur, avec la même passion que celle qui m’habite, les news de ce secteur florissant !


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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