But Wall Street has been trying to launch a bitcoin ETF for years, and VanEck saw its latest proposal rejected in September 2019.
- A bitcoin exchange-traded fund could finally land on Wall Street in 2021 after VanEck filed an application with the Securities and Exchange Commission this week.
- Regulators have previously rejected numerous bitcoin ETF proposals, including one from VanEck in September 2019.
- But bitcoin’s surge to new highs in 2020 – driven by increased adoption by institutions and a change of custody at the SEC – could improve the chances of an ETF’s regulatory approval.
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A bitcoin exchange-traded fund could go live in 2021 if a VanEck application filed this week with the Securities and Exchange Commission proves successful.
A bitcoin ETF operated by VanEck would follow the Gold Trust ETF route in that it would hold the underlying bitcoin, according to the filing. The VanEck Bitcoin Trust would mirror the performance of the MVIS CryptoCompare Bitcoin benchmark rate.
Wall Street has been trying to launch a bitcoin ETF for years and VanEck saw its latest proposal rejected in September 2019.
But now, with a change of guard at the SEC and bitcoin skyrocketing to new heights – in part thanks to increased adoption by institutions – the odds of approval could be higher than ever.
Jay Clayton, who opposed the launch of a bitcoin ETF during his tenure, stepped down as SEC chairman earlier this month. And Treasury Secretary Steven Mnuchin, who has not been receptive to bitcoin, is expected to be replaced by Janet Yellen next month.
Bitcoin is up nearly 300% since the start of the year, and major Wall Street institutions have warmed towards cryptocurrency. MassMutual acquired $ 100 million worth of bitcoin earlier this month, and high profile investors like Paul Tudor Jones and Stanley Druckenmiller have also signed on to the cryptocurrency.
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On the business side, Square and PayPal have bought bitcoin in recent months and made it easier to buy and sell bitcoin in their respective apps.
Still, there are hurdles to approving a bitcoin ETF as it seeks acceptance by regulators, and that will likely depend on whether President-elect Joe Biden is chosen to lead the SEC.