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VanEck filed a new draft prospectus with the Securities and Exchange Commission (SEC) for a Bitcoin futures mutual fund on Monday.
The fund will not invest in Bitcoin directly
The “Bitcoin Strategy Fund,” according to the prospectus, will invest in bitcoin futures contracts, pooled investment vehicles, and exchange-traded products (ETPs) having Bitcoin exposure. However, the fund will not make direct investments in Bitcoin or other digital assets.
The reason behind why the fund does not invest in Bitcoin directly is likely because the SEC is wary of approving anything that provides direct exposure to the cryptocurrency for fear of exposing investors to danger. This has been one of the main topics of discussion in the ongoing ETF review.
Gregory Krenzer the deputy portfolio manager for VanEck Commodity Index Strategy and head of active trading with extensive experience in commodities, natural resource equities and emerging markets will manage the portfolio of the fund, which will invest in bitcoin futures through a subsidiary in the Cayman Islands.
The company seems to be witnessing a series of delays
Earlier this month, the SEC postponed a decision on VanEck’s proposed Bitcoin exchange-traded fund (ETF) for the second time this year. The SEC is seeking additional public comments, extending the review period by 45 days. However, in Europe, the investment firm launched a thematic ETF last month that provides exposure to companies in the cryptocurrency and blockchain industry. The ETF was created to compete with a similar offering from asset manager Bitwise.
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