VanEck filed for ETH ETF, exchange-traded fund, as the coin surged recently to $3444 as we reported previously in our Ethereum news.
According to a Form S-1 filed with the US SEC, VanEck filed for ETH ETF and is called VanEck Ethereum Trust that will trade on the Cboe BZX exchange is approved. The investment product will track the MVSI CryptoCompare Ethereum Benchmark and will hold physical ETH and as a custodian, VanEck appointed the Delaware Trust Company. According to the document, the custodian will hold the physical ETH, and if the crypto trades downwards VanEck will redeem or will sell more shares. Selling the coin was ruled out and as per the document
“The Trust’s investment objective is to reflect the performance of the MVIS® CryptoCompare Ethereum Benchmark Rate less the expenses of the Trust’s operations. In seeking to achieve its investment objective, the Trust will hold Ether (“ETH”) and will value its Shares daily based on the reported MVIS® CryptoCompare Ethereum Benchmark Rate.”
VanEck also filed for a Bitcoin ETF with the SEC and in the past, theirs and the rest of the petitions were rejected by the regulator but the current seems quite different and more promising. Gary Gensler is a former MIT professor with a course on crypto and blockchain which has been confirmed by the Chairman by the US Senate. His position seems to be more flexible and pragmatic than the predecessors. The regulator will evaluate VanEck’s petition and will rule in favor or against it. The SEC extended the period to issue a ruling which is used in the past.
In the meantime, there’s a crypto mania for ETFs in Canada and the senior ETF analyst for Bloomberg Intelligence Erick Balchunas explained. The country approved several BTC and ETF ETFs as their trading volume surged in the past week:
“Canada going crazy for crypto. Thought the story would be $ETHX’s record smashing volume but no, the 3iQ Bitcoin ETF came out of nowhere to trade $200m, most in country. Likely (another) massive creation. It’s already up to $600m aum (equivalent of $16b in US lol).”
Grayscale’s ETH-based investment product and is possibly the closest thing to an ETF in the US and the product surpassed the volume that of the Grayscale BTC trust as Balchunas said. This suggests that ETH gained more attention from institutional investors with the price responding accordingly with ETH reaching a new all-time high in the same period.
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