According to a prospectus filed Monday, the global investment manager VanEck submitted an application with the U.S. SEC for a Bitcoin Strategy Fund that will invest in Bitcoin futures contracts, ETPs, and pooled investment vehicles.
Source: The Securities and Exchange Commission (SEC)
VanEck has filed a preliminary prospectus to launch a mutual fund that invests in Bitcoin futures
It is known that the fund will have exposure to certain Bitcoin futures through its fully-owned subsidiary operating in the Cayman Islands. The fund will not invest in Bitcoin or other cryptocurrencies directly.
The prospectus noted:
“The subsidiary has the same investment objective as the fund and will follow the same general investment policies and restrictions, except that, unlike the fund, it may invest without limit in Bitcoin futures.”
According to the prospectus, the fund’s investment in the subsidiary will not exceed 25% of the value of the fund’s total assets at each quarter-end of the fund’s fiscal year. Additionally, the fund may invest in restricted securities – securities acquired in unregistered, private sales from an issuing company – including private investment funds.
The stance on not investing directly in Bitcoin is important, as the SEC is hesitant to approve anything that offers direct exposure to the cryptocurrency for fear of investor risk. This is one of the key points in the ongoing ETF review process, of which there are currently several ETFs that the SEC has to deal with.
Last week, the SEC started seeking additional comments to confirm whether or not it should greenlight VanEck’s Bitcoin ETF proposal.
Read more:
- The U.S. Securities And Exchange Commission (SEC) Has Delayed Its Decision On The VanEck Bitcoin ETF Again
- SEC Extends Review Period Of The VanEck Bitcoin ETF Bid By 45 Days