According to the filing, the VanEck Vectors Bitcoin Strategy ETF will be actively managed, and will invest in bitcoin-linked vehicles. Here’s the full run-down:
The Fund seeks to achieve its investment objective by investing, under normal circumstances, in U.S. exchange-traded bitcoin-linked derivative instruments (“Bitcoin Instruments”) and pooled investment vehicles and exchange-traded products that provide exposure to bitcoin (together with Bitcoin Instruments, “Bitcoin Investments”).
VanEck also made it a point to explain how bitcoin works:
Bitcoin is an asset that is not issued by any government, bank or organization. A bitcoin is an asset that can be transferred among parties via the Internet, but without the use of a central administrator or clearing agency. The asset, bitcoin, is generally written with a lower case “b.” When written with an uppercase “B,” the word “Bitcoin” generally refers to the computers and software (or the protocol) involved in the transfer of bitcoin among users. The computers running Bitcoin software constitute the Bitcoin network. The Bitcoin network is configured as a peer to peer network. Peer to peer networks consist of computers that relay information among each other with no computer functioning as leader. The asset, bitcoin, is the intrinsically linked unit of account that exists within the Bitcoin network.
The VanEck Vectors Bitcoin Strategy ETF will trade on the Nasdaq exchange, assuming it meets difficult regulatory approvals. This latest filing joins a group of would-be funds vying for SEC approval, including the Winklevoss Bitcoin Trust ETF (NASDAQ:COIN), which was first filed a couple of years ago, and has met repeated denials from regulators.