VanEck Files New Bitcoin ETF for Institutional Investors

So, VanEck and SolidX Partners just took a shot at getting a Bitcoin-based ETF listed with the SEC, according to Bloomberg from June 6. VanEck, which is based in NYC and manages about $38 billion, is teaming up with SolidX, a company that specializes in blockchain software and financial services. Their filing is for a fund that’s physically backed, meaning it’ll actually hold real Bitcoins. They’re claiming this setup will help prevent any losses or theft of the crypto. The SEC hasn’t been too friendly when it comes to crypto ETFs. They turned down the Winklevoss Bitcoin Trust ETF last year and have asked a bunch of applications to be retracted this past January. SolidX CEO Daniel H. Gallancy mentioned in a chat with Bloomberg that he believes regulators are worried about retail investors getting their hands on an ETF right now. But he thinks that’ll change eventually. For now, they’re focusing on a product just for institutional investors, which seems smart. If they get the green light, Bloomberg says the fund shares could go for around $200,000 each, aiming at institutions instead of everyday investors, which is way higher than what typical ETFs target.

How could I not hear anything about VanEck earlier?

It will very likely come through this time. The SEC would reject it without hesitation if it was a tool accessible to the main part of the retail world, but it isn't due to its entry point. Their reasoning is that institutions and wealthier parties are more capable of taking well thought out decisions, which is true, especially if we look at how many fools we have in the crypto world gambling their life savings and taking out mortgages and whatnot. The most interesting part is that this ETF doesn't just track the price of the underlying asset, but it is actually backed by $200,000 worth of Bitcoin as well. In other words, every ETF share that is bought up, translates into $200,000 worth of Bitcoin being taken out of circulation. Retail and the regulative establishments will always collide, but in this case no one cares about that. Fresh capital flowing in Bitcoin's market is all that matters.

I doubt this as I couldn't find any evidence of this statement. $200,000 of holding for an ETF fund is too low. What I found is that the amount you mentioned, is the minimum purchase value into this ETF because the company is targeting institutional investors and not the retails ones. Please research more into this information. So they are not going to infuse fresh capitals into bitcoin market, instead like any other ETH fund, they will just track the bitcoin's price movement. SO this kind of funds are not helping the bitcoin market at all. No capital inflows from these investors will come into bitcoin market.

https://www.sec.gov/news/press-release/2024-20 "SEC Charges Van Eck Associates for Failing to Disclose Influencer’s Role in Connection with ETF Launch FOR IMMEDIATE RELEASE 2024-20 Washington D.C., Feb. 16, 2024 — The Securities and Exchange Commission today announced that registered investment adviser Van Eck Associates Corporation has agreed to pay a $1.75 million civil penalty to settle charges that it failed to disclose a social media influencer’s role in the launch of its new exchange-traded fund (ETF)." ___ The whole story ended with a very small fine. Someone pays billions and someone pays millions