US investment management firm VanEck has filed a request with the U.S. Securities and Exchange Commission (SEC) to launch an ETF that tracks the performance of major cryptocurrency companies.
The application for authorization for an ETF from crypto companies by the American investment manager VanEck follows several unsuccessful attempts to obtain approval for a Bitcoin ETF.
The new Digital Assets ETF seeks to track the price and performance of the Global Digital Assets Index.
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Founded more than six decades ago, VanEck is a New York-based investment manager with about $ 50 billion in assets under management according to 2019 data.
The company has made several attempts to start a U.S.-based ETF to track Bitcoin performance, but has now decided to make a different type of exchange-traded fund related to cryptocurrency.
According to a document with the SEC, VanEck named the new fund “Digital Assets ETF”. The document says that the new fund "seeks to monitor as closely as possible, before fees and expenses, the price and performance yield of the MVIS Global Digital Assets Equity Index."
The Digital Assets Fund plans to invest at least 80% of total assets in securities that make up its benchmark, which tracks the performance of the digital assets segment.
VanEck explained that the segment is made up of “companies that operate digital asset exchanges, payment gateways, mining operations, software services, equipment technology or services for the digital assets industry, infrastructure” or companies that facilitate trade with the use of digital assets.
These companies need to generate at least 50% of their revenue from projects related to digital assets.
VanEck's Bitcoin ETF Attempts
The investment manager had already sought approval to launch a Bitcoin ETF on several occasions, but without success so far.
The last attempt came just before the dawn of the new year, when the company filed an S-1 form with the SEC to establish an ETF called The VanEck Bitcoin Trust.
The company's request said ETF shares would be traded on the Cboe BZX Exchange if approved.
Although the SEC has not yet provided an answer, the Commission has a rich history of rejecting such requests, including several previous attempts by VanEck itself.
In 2018, the SEC already rejected nine applications of bitcoin ETFs in a single day.
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