Investment Firm VanEck to launch a Bitcoin ETF
A leading investment company, VanEck is on track to be the pioneer of a Bitcoin exchange-traded fund, a feat the firm has been attempting to achieve for a couple of years now. At present, the Securities and Exchange Commission Exchange will get a change of leadership; a development VanEck wants to use to test the waters.
In mid-January, the company applied to the SEC for a fresh Bitcoin ETF. The product tagged the Digital Assets ETF is built to monitor the operation of the Global Digital Assets Equity Index. The Digital Assets Equity Index (DAEI) was launched in 2018 with Cumberland, Circle Trade, and Genesis trading as over-the-counters.
The Requirements of the Global Digital Asset Index
The DAEI is a provider of authentic pricing index which institutional investors can utilize. It is also an investment tool for transparently executing large trades. In its recent remarks, the company’s representative noted that the Digital Assets ETF would have about 80% of its investment in securities, which serve as its benchmark index.
Besides, the Index is used to track performances of digital asset firms; that is, companies that serve as crypto exchanges, technology services, payment gateways, and more. Companies that intend to participate must obtain a minimum of 50% of their revenues from digital asset programs or programs that have the potential to attract equal revenue.
The statement added that firms with less than a half of their revenues from the global digital assets product and online money transfer companies and semiconductors can still be included in the Index to make the minimum required number. In 2018, VanEck and SolidX Partners made public their decision to list a bitcoin ETF that is immune to theft or loss.
The agreement involved VanEck marketing the ETF while SolidX would sponsor the deal. They revealed that they had both filed individually in the past, but the filings were not successful. Eventually, both firms revoked their filings to launch the ETF at the behest of the U.S. SEC. Then, VanEck expressed optimism that both companies would build a successful ETF that would surpass stakeholders’ expectations. The product was aimed at providing exposure to bitcoin’s price.
An Unending Lawsuit
The fresh VanEck’s attempt is the most recent in its numerous tries to succeed in its ETF. Most of its past trials were either rejected or halted whenever the company was frustrated with SEC’s attitude towards its applications. Meanwhile, the SEC leadership is now being replaced as the Chairman is leaving and will be replaced by a new person. VanEck now seems to be ready to take another shot at its much-coveted ETF. Nevertheless, this attempt is shrouded in some controversies.
A few weeks ago, a software development firm, SolidX Partners, filed a lawsuit against VanEck for failing to fulfill its contractual agreement in an ETF filing attempt both firms agreed on. In 2018, both firms applied for the Bitcoin Trust, but SEC’s adamant position became the barrier to their goal.
In the last quarter of last year, VanEck decided to start ETF filing afresh. This prompted SolidX Partners to launch a lawsuit against VanEck. In its released statement, the latter accused VanEck of plagiarism, stemming from the fact that VanEck used the template and design both partners developed together in their attempt to file ETF.