VanEck’s innovative approach to seed its Bitcoin ETF comes as BTC reaches new heights, providing investors with a timely opportunity to capitalize on the cryptocurrency’s surge towards the $35K mark.
Asset management firm VanEck has amended its spot Bitcoin (BTC) exchange-traded fund (ETF) application with the U.S. Securities and Exchange Commission (SEC) on Oct. 27. The amended filing has drawn attention from the crypto community due to its unique seeding method. Seeding is the initial funding required for the launch and accessibility of an ETF. VanEck’s filing indicates a distinct strategy to seed its ETF with Bitcoin, which differs from the seeding method employed by its competitor, BlackRock. The filing shows that an unnamed investor acquired the fund’s Seed Creation Baskets in October, which contain 50,000 ETF shares bought with Bitcoin. The amendment aligns VanEck with other contenders such as BlackRock, Ark 21Shares, and Bitwise.
Meanwhile, BTC’s price is attempting to reclaim the $35,000 mark after a subdued performance over the weekend. The renewed optimism surrounding the possibility of approval for a spot BTC ETF by the SEC caused BTC to touch a yearly high of over $35,000. Currently, BTC is trading at $34,754, up nearly 30% in the past month. The global cryptocurrency market is valued at $1.28 trillion with a 24-hour volume of $36.59 billion, and Bitcoin dominance is at 52.90%.
