• VanEck has released its own Bitcoin ETF commercial, bringing the number of related ads to four.
  • Bitwise and Hashdex have their own running, with the former having two pedaled by actor Jonathan Goldsmith.
  • Meanwhile, the US SEC has settled on cash system for creation and redemptions as a strategy against market manipulation.
  • BlackRock, Valkyrie, ARK Invest, 21Shares, Fidelity, Invesco, and Grayscale are among the filers that have already capitulated the request.

Amid ongoing marketing wars for the spot Bitcoin exchange-traded funds (ETFs), several filers have published ad commercials meant to put their products in the market. This entirely on hope, or confidence, that the US Securities and Exchange Commission (SEC) will provide approvals to their applications.

Also Read: Spot Bitcoin ETF filers issue high-quality messaging, marketing wars heat up even before approvals

VanEck enters the arena for marketing wars

Global investment manager VanEck is the latest institutional player in the race for spot BTC ETFs approval to publish an ad commercial for its expected product, while like the rest, is still pending approval. The ad, which headlines as ‘Born to Bitcoin’ urges the intended audience to buy BTC while putting forth a disclaimer about the risks of investing.

With this publication, VanEck joins Bitwise and Hashdex, who released their adds last week. Bitwise has two ads featuring renowned actor Jonathan Goldsmith released on December 18 and 20, while Hashdex told investors that it is a crypto-focused firm on December 20 via an ad.

The ad commercials serve one main purpose, to advertise their prospective products or offerings and capture their respective markets. While this does not confirm any certainty regarding the approval of the applications, it is a show of confidence in a positive outcome. 

SEC chooses cash redemptions over in-kind creates

In a related matter, the US SEC has settled on the ETFs doing cash creates (cash redemptions) as opposed to in-kind creates (crypto redemptions). The resolution comes as the financial regulator doubles down on preventing market manipulation should approvals for the spot BTC ETFs come.

Filers that fail to bend the knee to the cash redemptions request from the SEC may have to wait as abiders potentially go through with the first wave of approvals.

A Bloomberg Intelligence ETF specialist, Eric Balchunas, had alluded to these strictures in a recent post after Valkyrie capitulated. Others that have embraced the demand include BlackRock, ARK Invest, 21Shares, Fidelity, Invesco, and Grayscale, with the move showing that these filers prioritize getting an ETF approved, even if it is in the ideal conditions. Some of them have an open clause in their submissions, reading, “[subject] to in-kind regulatory approval.” This means they maintain hope for in-kind creations down the road.

Elliot Johnson, CIO and COO of Canada’s Evolve ETFs, has also encouraged embracing cash redemptions, adding that they “could change it later” after approvals come in.

Evolve ETFs is an asset management firm that provides Canadian investors with access to innovative investment solutions.

It is worth mentioning that the Canadian spot ETFs have been using the cash create model for years now.

Case difference between cash redemption and in-kind creates

The SEC pushing for cash creates is based on the proposal that broker-dealers cannot deal in Bitcoin, unlike exchanges. However, if the ETFs do cash creates, the broker dealers or institutional players applying for spot BTC ETF approvals would take the initiative to transact in BTC.

Such a turn of events would reduce limitations for everyone by keeping the institutional players from using unregistered subsidiaries or third-party firms to deal with the BTC.

Crypto ETF FAQs

What is an ETF?

An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.

Is Bitcoin futures ETF approved?

Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.

Is Bitcoin spot ETF approved?

Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.

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