It also mentions a lack of consensus between miners and core developers, decentralized applications abandoning the Ethereum network, flaws in the source code, and EIP 1559 negatively impacting the network’s utility.
Back in December, VanEck also submitted an application for a Bitcoin ETF after numerous failed attempts to gain the SEC’s approval.
The SEC is yet to greenlight an exchange-traded fund tied to the value of any cryptocurrency. Last month, the agency postponed its decision on VanEck’s ETF proposal to June.
Meanwhile, Canadian regulators approved the launch of several Bitcoin and Ethereum ETFs earlier this year.
This May, VanEck’s thematic ETF that offers exposure to cryptocurrency or blockchain-oriented companies made a debut in Europe.
Fidelity’s in-house bitcoin price index, per the filing.
“The Trust’s investment objective is to seek to track the performance of bitcoin, as measured by the performance of the Fidelity Bitcoin Index PR (the “Index”), adjusted for the Trust’s expenses and other liabilities,” the filing notes, explaining elsewhere:
“The Trust provides direct exposure to bitcoin, and the Shares of the Trust are valued on a daily basis using the same methodology used to calculate the Index. The Trust provides investors with the opportunity to access the market for bitcoin through a traditional brokerage account without the potential barriers to entry or risks involved with holding or transferring bitcoin directly, acquiring it from a bitcoin spot market, or mining it.”
The fund’s name is similar to the Wise Origin Bitcoin Index Fund I, launched in August 2020 by Fidelity.
Vanguard on Wednesday filed for exemptive relief with the Securities and Exchange Commission to create an entirely new line of transparent actively managed exchange-traded funds.
In it’s filing, the Valley Forge, Pa.-based company is seeking approval to create stand-alone ETFs. That differs from a similar exemptive relief filing from March 2014 for transparent ETFs where Vanguard sought approval to offer an ETF share class of existing actively managed stock or bond funds.
Vanguard currently offers 70 passive ETFs listed in the U.S., all of which are market cap-weighted products based on its existing mutual funds.
Before it entered the ETF space in 2001, Vanguard decided against creating stand-alone products like those of iShares or State Street and instead sought to leverage the mutual funds it already had by creating a separate ETF share class for those funds.
Management giant files etfal
It reasoned that it would be more cost-efficient from both trading and management perspectives to offer funds across a multi-share class structure.
It created a patented method of taking a mutual fund and creating an alternate ETF share class that trades on an exchange, which some analysts said posed possible legal problems for mutual fund companies when it came to translating their traditional open-end active portfolios into accompanying ETFs.
The much-anticipated rollout of active ETFs has been a slow-motion process of much talk and little action, with some companies filing for exemptive relief and the SEC being slow to provide a thumbs up for those plans.
Asset management giant VanEck has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund called “VanEck Ethereum Trust.” If approved, its shares will be trading on the Cboe BZX Exchange.
The VanEck Ethereum Trust (the “Trust”) is an exchange-traded fund that issues common shares of beneficial interest (the “Shares”) that trade on the Cboe BZX Exchange, Inc.
(the “Exchange”). The Trust’s investment objective is to reflect the performance of the MVIS® CryptoCompare Ethereum Benchmark Rate less the expenses of the Trust’s operations.
The preliminary prospectus lists a failure to properly transition to the proof-of-stake consensus mechanism as one of the main risks associated with the proposed ETF.
The Wise Origin Bitcoin ETF is the latest entrant in a growing race to launch a bitcoin exchange-traded product in the United States. According to the filing, a firm called FD Funds Management LLC is the sponsor of the fund, with Fidelity Service Company, Inc.
serving as administrator. Per the document, FD Funds Management LLC shares the same Boston, MA address as Fidelity’s office.
Fidelity Digital Assets, the asset manager’s crypto-focused arm, will serve as custodian.
Investment management behemoth Fidelity has submitted an application for an exchange-traded fund (ETF) that would monitor the performance of public firms that are developing and marketing products for the metaverse.
According to the filing submitted on January 27, the Fidelity Metaverse ETF will track the Fidelity Metaverse Index, which tracks “the performance of a global universe of companies that develop, manufacture, distribute, or sell products or services related to establishing and enabling the Metaverse.”
Fidelity’s application is the latest in a long line of corporations attempting to capitalize on the growing interest in the metaverse.
ETFs, and options.
According to the spokesperson for BlackRock, financial investors have been looking for a viable substitute for Bitcoin spot ETFs. At the time the closest option is Transformational Data Sharing ETFs called BLOK by Amplify Investments.
The fund is currently valued at $1.1 billion and operating since 2018.
One important factor about the BlackRock crypto fund is that it will not invest actively or passively in any crypto assets or their derivatives. CFRA senior director, Todd Rosenbluth recently posted on Twitter that the official blockchain ETF filing by iShares is going to set a new trend in the cryptocurrency market and work as a flag bearer of fintech innovation among investors.
BlackRock revealed plans to invest in cash-based Bitcoin futures registered with CFTC through fund releases from MDLOX and BASIX last year.
The latest updates from the firm have revealed its plan to dabble in the cryptocurrency industry. iShares Blockchain and Tech ETF native to the BlackRock Group is planning to track the index of the NYSE FactSet Technologies Index.
The news was confirmed by a spokesperson of the asset management firm and from the official filing recently. The index plans to include all the major and viable crypto networks operating out of the USA and globally.
Another hang-up has been fears that exposing active mutual fund portfolios to daily disclosure in an ETF needed for intraday trading runs the risk of front running by professional traders such as hedge funds.
That has spawned creative strategies to thwart front running by keeping holdings non-transparent, such as the exchange-traded mutual fund structure from NextShares, which are active funds owned by Eaton Vance that began trading in February. These hybrid products have the low fees and intraday trading of ETFs, but like mutual funds are priced at net asset value just once daily after the market closes.
The funds don’t have to disclose their holdings on a daily basis.
And just last week, Fidelity Investments filed with the SEC for approval of non-transparent actively managed ETFs based on a modified closed-end fund structure called exchange-traded active funds.