Thomas Daniels
On the final day for submissions, the asset manager revised its S-1 Form with the SEC, opting for cash-only subscriptions, a common choice among those seeking approval for a spot Bitcoin ETF.
VanEck’s latest update omits the names of authorized participants (APs) for its VanEck Bitcoin Trust, a fund designed to invest in Bitcoin, the leading cryptocurrency by market value, at its current market price. Similar to VanEck, other companies, including BlackRock, have modified their prospectuses to comply with the SEC’s emphasis on cash-only arrangements. Yet, these amendments have not revealed the APs, who serve as de facto underwriters for these ETFs.
APs, typically financial institutions like banks or investment firms, ensure payments and redemptions to cover potential financial losses. Before launching a spot Bitcoin ETF, companies like VanEck must reveal their APs if they receive SEC approval.
Every issuer is required to submit a finalized prospectus before launch, indicating readiness to commence operations. This document is expected to include the names of APs, fees, and other crucial details.
As per James Seyffart, a Bloomberg ETF analyst, on December 29, VanEck released a promotional video on platform X for their forthcoming spot BTC ETF, anticipating approval in early January. Hashdex, competing for the same cryptocurrency fund, also intensified its promotional efforts and submitted a new S-1 Form.
There have been notable leadership changes among issuers and custodians, preparing for what Michael Saylor, CEO of MicroStrategy, predicts to be the most significant event on Wall Street in over 30 years.
Grayscale recently recruited the former head of Invesco’s ETF division, while Aaron Schnarch has taken over as CEO of Coinbase Custody, replacing Rick Schonberg. Coinbase Custody is identified as the custodial partner for various spot BTC ETFs, including those from BlackRock, Valkyrie, Invesco, and ARK 21Shares.
