VanEck updates spot Bitcoin ETF filing and releases teaser ad

VanEck amended its spot Bitcoin ETF application with the U.S. Securities and Exchange Commission (SEC) on Dec. 29.

The company’s updated S-1 form notably removes immediate allowance for in-kind transactions involving Bitcoin. The Dec. 29 update says that authorized financial firms will deliver and receive only cash during share creation and redemption. It adds that authorized participants “will not directly or indirectly purchase, hold, deliver, or receive bitcoin” as part of subscription and redemption and says that in-kind models are subject to regulatory approval that may never occur.

The filing also adds information related to a seed share purchase, noting that proceeds to the trust from the sale totalled $25 million.

The update adds that VanEck expects to enter an agreement with Coinbase Custody to serve as an additional custodian, though this is not guaranteed. Many other applicants have made similar agreements with Coinbase Custody.

One section changes how Bitcoin prices are calculated according to the MarketVector™ Bitcoin Benchmark Rate, though it is unclear whether this is a change in practice or merely a description change.

Outside of its updated filing, VanEck published a 19-second teaser reading “Born to Bitcoin” but denied that the clip is an advertisement. VanEck is the third Bitcoin ETF applicant to release a teaser video following Bitwise and Hashdex.

Possible approval date draws near

Other firms have filed their own amendments in recent days, seemingly prompted by a Dec. 21 meeting in which the SEC requested firms to change mentions of in-kind models to cash models. Ark Invest, Grayscale, BlackRock, and Pando Asset AG are among the firms that have submitted amendments since then.

Dec. 29 also marks the final date for companies to submit changes to their applications, meaning that further amendments are not expected at this point.

Some experts believe that the SEC will approve a spot Bitcoin ETF by Jan. 10, 2024. At that time, the SEC must reach a decision on Ark Invest’s application and may approve multiple other similar applications alongside it.