Blue bitcoin
Blue bitcoin
Yuichiro Chino
  • VanEck's first bitcoin futures ETF will begin trading on Tuesday, Cboe said in a notification.
  • The VanEck Bitcoin Strategy ETF will be listed on the Chicago Board Options Exchange under the ticker symbol XBTF.
  • The SEC last week rejected VanEck's application to launch a spot bitcoin exchange-traded fund.

Asset manager VanEck's bitcoin futures exchange traded fund (ETF) will start trading Tuesday, the Chicago Board Options Exchange (Cboe) said in a notification.

Last month, VanEck said the fund would start trading after October 23 on the Cboe BZX Exchange. It will be listed under the ticker symbol XBTF, and gives investors exposure to bitcoin without holding the coin.

The Securities and Exchange Commission pushed back its deadline to make a decision on the fund several times after Cboe first filed for the bitcoin futures ETF in March.

The VanEck launch follows a blockbuster launch for ProShares' bitcoin futures product (BITO), which saw 24 million shares change hands on its first day of trading in October – the second-biggest ETF debut in history. That and the launch of Valkyrie's bitcoin futures ETF (BTF) the same month is viewed as a pivotal moment for crypto assets.

The news comes after the SEC rejected the application for a long-awaited spot bitcoin ETF from VanEck on Friday, citing exchange rules linked to preventing fraud and manipulation.

"While a 'physically backed' bitcoin ETF remains a key goal, we are very pleased to be providing investors with this important tool as they build their digital asset portfolios," Kyle DaCruz, VanEck's director of digital assets, said in a company launch statement Monday.

The VanEck product will only invest in cash-settled bitcoin futures traded on exchanges registered with the Commodity Futures Trading Commission, such as the CME Group, according to its SEC filing.

Last week, Bitwise Asset Management withdrew its application for a bitcoin futures ETF, saying it made the decision because of the high cost and likely underperformance of the fund. The crypto index fund manager's CEO Matt Hougan said he believes bitcoin futures ETFs will generally underperform spot bitcoin, and most long-term investors are better served by spot exposure.

VanEck is still waiting on the SEC to approve or reject the ethereum-based ETF that it filed in May. The company could not be reached for comment when contacted by Insider.

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