VanEck to launch bitcoin futures ETF on Tuesday, while spot bitcoin ETF remains elusive

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By Frances Yue

VanEck on Tuesday will launch its VanEck Bitcoin Strategy ETF, an exchange-traded fund that will invest in bitcoin futures contracts, while the investment manager’s application for a spot bitcoin ETF last week appeared unlikely to win regulatory approval.

The bitcoin futures ETF, which will trade with the “XBTF” ticker symbol on Cboe, is actively managed by Greg Krenzer, VanEck’s head of active trading, VanEck said in a statement on Monday.

The ETF has a net expense ratio of 0.65%, lower than the 0.95% expense ratio of competitors ProShares Bitcoin Strategy ETF (BITO) and Valkyrie Bitcoin Strategy ETF (BTF).

State Street will provide services such as ETF basket operations, custody of the ETF shares, fund accounting and order-taking, according to the statement.

“While a ‘physically backed’ bitcoin ETF remains a key goal, we are very pleased to be providing investors with this important tool as they build their digital asset portfolios,” Kyle DaCruz, VanEck’s director of digital assets product, said in the statement.

VanEck on Friday received comments from the SEC that its planned VanEck Bitcoin ETF, which will directly invest in bitcoin, doesn’t pass the threshold for addressing concerns about possible market manipulation of the underlying bitcoin.

Bitcoin recently traded at $65,029, up 1.1% over the past 24 hours. BITO was trading at $41.60 Monday morning New York time, up 1.24%. BTF was trading at $25.60, up 1%.

-Frances Yue

 

(END) Dow Jones Newswires

11-15-21 1014ET

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