Taking advantage of the change in administration at the United States Securities and Exchange Commission (SEC), VanEck, an American investment giant, files its third application for the creation of an ETF for Bitcoin.
VanEck Associates Corp is an investment management and management company based in the United States, and with international offices, that manages funds under administration worth more than 50 billion dollars, and that has been pursuing for several years the dream of creating a ETF, or exchange-traded investment fund, for Bitcoin.
An ETF for the most important cryptocurrency on the market will take investment in it to a new level, making it one of the most anticipated investment vehicles for the entire crypto community. However, all attempts by VanEck, and other investment firms, to get this product approved have failed in the past. The United States Securities and Exchange Commission (SEC) is the entity in charge of approving this financial instrument, and has not approved any of the proposals previously presented; So, until now, a Bitcoin ETF remains a dream.
However, the change in administration of the SEC, with the recent departure of its previous president, Jay Clayton, has renewed hopes in VanEck, who has already presented his third request before this agency and awaits approval of its ETF called The VanEck Bitcoin Trust.
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The third time may be the charm
Surely VanEck managers are applying the saying: “Third time's the charm,” Well, this time, there are greater chances that your application for the creation of a Bitcoin ETF will be approved. Jay Clayton was chairman of the SEC from 2017, until December 23, 2020, when he formally resigned from the position. Clayton always maintained a strict and unfavorable position for the crypto industry, so much so that a few minutes after presenting his resignation, he filed a lawsuit against Ripple. Thus, in the past, Clayton rejected all applications that were submitted to the SEC for the creation of a Bitcoin ETF.
Now, the person who presides over it is the commissioner Elad Roisman, who serves as acting chairman of the SEC and is known for maintaining a friendly relationship with cryptocurrencies. Roisman said in 2018 that the SEC should prepare to address new technologies (the cryptocurrencies, and blockchain) fairly and transparently, and adapt to these by adjusting and re-examining “its rules, regulations and guidelines”. However, Roisman's nomination for this position was submitted by President Donald Trump, so he has until January 20 to make important decisions at the agency; Well, when Joe Biden assumes the presidency of the United States, he will make new appointments.
Institutional demand favors the creation of a Bitcoin ETF
In addition to the change of administration and the favorable position that Roisman can demonstrate at the SEC, the surprising momentum and adoption of Bitcoin during 2020, and especially in the fourth quarter of the year, also renewed hope that this investment vehicle will be approved ; Well, institutional interest in Bitcoin is quite evident and will continue to grow this year.
An ETF will allow traditional investors to overcome the psychological barriers of investing in cryptocurrencies, being able to easily trade and trade Bitcoin-based stocks without the need to trade or exchange cryptocurrencies through exchanges or Bitcoin exchanges; Furthermore, they will not have to worry about the security or management of cryptocurrencies and will be able to implement known platforms and tools to carry out their operations with complete confidence. Likewise, this financial instrument will allow investment in Bitcoin to be capitalized in highly liquid markets, such as New York, and much more.
For her part, being a powerful investment tool, the commissioner of the SEC, Hester M Peirce, is also a strong defender of the SEC changing its view regarding cryptocurrencies, and allowing the institutionalization of Bitcoin through an ETF. According to VanEck's SEC filing, the Bitcoin ETF will be listed on the Cboe BZX Exchange.
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