While it is still awaiting a decision on its Bitcoin ETF application with an update expected before June 17, asset management firm VanEck has filed another proposal with the U.S. Securities and Exchange Commission (SEC). This time for an Ethereum exchange-traded fund (ETF).
The SEC received multiple Bitcoin ETF filings this year but has yet to approve any type of crypto ETF. This in stark contrast to Canada, where several firms were already given the green light in January.
VanEck partners with Cboe BZX Exchange on the offering just as with their proposed Bitcoin ETF.
As the filing reads, “The Trust provides investors with the opportunity to access the market for ETH through a traditional brokerage account without the potential technical barriers to entry or risks involved with holding or transferring ETH directly, mining it, or acquiring it from an exchange.”
An ETF is a financial product that allows people to invest in an asset without any direct exposure. In this case, investors can buy and sell what amounts to a stock version of Ethereum that tracks its price. Hence shares in the VanEck ETF would be calculated daily using prices from five Ethereum exchanges.
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