TRENDING:
Oil price
XAU/USD
EUR/USD
GBP/USD
Silver
Sponsored by
|

VanEck files prospectus with SEC for Bitcoin futures mutual fund

  • Investment firm VanEck has recently filed a draft prospectus for a Bitcoin-related mutual fund with a US regulator.
  • In the wealth manager’s filing with the Securities & Exchange Commission, VanEck acknowledged the possible risks involved.
  • The fund manager has yet to hear a decision from the SEC of its Bitcoin ETF filing that has been delayed twice. 
VanEck files prospectus with SEC for Bitcoin futures mutual fund
Sarah TranSarah TranIndependent Analyst

Wealth manager VanEck has filed a prospectus with the United States Securities & Exchange Commission (SEC) to launch the Bitcoin Strategy Fund. 

VanEck warns of risks associated with Bitcoin

This new prospectus filed with the securities regulator states that the fund will acquire Bitcoin exchange-traded products and futures. 

The fund manager will invest in Bitcoin futures contracts and use the CME CF Bitcoin Reference Rate (BRR) while also investing in pooled investment vehicles that directly and indirectly invest in the leading cryptocurrency.

The new crypto fund, introduced as the investment manager as the “Bitcoin Strategy Fund,” will have its share price fluctuate with the changes in the market value of its portfolio securities. 

In addition, VanEck stated that it would not acquire Bitcoin directly due to the risks involved with the cryptocurrency markets. The fund manager said that the fund would not invest in other digital assets directly either. The filing states:

“The value of Bitcoin and, therefore, of the fund’s Bitcoin-related investments could decline rapidly, including to zero. You should be prepared to lose your entire investment.”

The global investment manager filed the registration on June 21, and in addition to the Bitcoin-related investments, the fund will also have significant holdings of cash and fixed-income investments. 

VanEck also added that the fund’s risks are not only limited to the bellwether cryptocurrency but also the risks involved with pooled investment vehicles, target exposure and rebalancing, borrowing and leverage, tracking errors, credit issues and interest rate discrepancies. 

The fund manager has yet to receive an outcome on the decision from the SEC of its exchange-traded fund (ETF) registration. Earlier this month, the securities regulator delayed making a decision on the VanEck Bitcoin Trust for the second time. 

Author

Sarah Tran

Sarah Tran

Independent Analyst

Sarah has closely followed the growth of blockchain technology and its adoption since 2016.

More from Sarah Tran
Share:

Editor's Picks

Why altcoin season isn't coming back — and what stole its capital

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

Bitcoin Weekly Forecast: BTC shrugs off CLARITY Act setback and hawkish Fed

Bitcoin Weekly Forecast: BTC shrugs off CLARITY Act setback and hawkish Fed

Bitcoin recovers, trading above $78,000 on Friday, but the 50-week SMA near $78,760 continues to cap its upside. A hawkish Fed outlook, escalating Middle East tensions, and the CLARITY Act's failure to advance in the US Senate could limit BTC upside.

Why Bitcoin's over 30% rebound doesn't mean the bear market cycle is done

Why Bitcoin's over 30% rebound doesn't mean the bear market cycle is done

BTC has staged a strong recovery after falling to a yearly low of $57,800 in July, gaining nearly 33% and recording two consecutive months of gains in July and August. Is this the start of a new bullish phase, or simply another recovery within a broader bear-market cycle?

Crypto Today: Bitcoin, Ethereum, XRP eye short-term breakout as bulls return

Crypto Today: Bitcoin, Ethereum, XRP eye short-term breakout as bulls return

Bitcoin trades higher near $78,000 on Friday as bulls return after early-week macro uncertainty and regulatory headwinds. Ethereum aligns with the broader crypto market’s neutral-to-bullish outlook, holding support above $2,400 and gaining momentum for a short-term breakout at $2,500.

Bitcoin: BTC shrugs off CLARITY Act setback and hawkish Fed

Bitcoin: BTC shrugs off CLARITY Act setback and hawkish Fed

Bitcoin (BTC) price action has remained resilient this week, trading above $78,000 at the time of writing on Friday, heading toward a key resistance zone. Institutional demand shows early signs of weakness, with spot Exchange Traded Funds (ETFs) on track for a second straight week of outflows, with over $420 million recorded through Thursday amid escalating Middle East tensions.