In Brief:
- VanEck’s bitcoin futures exchange-traded fund (ETF) slated to launch tomorrow.
- The VanEck Bitcoin Strategy ETF is to be listed on the CBOE exchange.
- VanEck’s product is marketed as the lowest-cost bitcoin-linked ETF.
VanEck, a leading global investment manager, announced the launch of its Bitcoin Strategy ETF (XBTF) tomorrow- November 16th.
According to the press release, the ETF is set to go live on the Chicago Board Options Exchange (CBOE) under the ticker symbol XBTF.
VanEck is marketing the ETF as the lowest cost Bitcoin-linked ETF, with a net expense ratio of 30 basis points (bps) lower than its nearest competitor.
XBTF has been constructed as a C-Corp., which may provide a more efficient tax experience for long-term investors.
The XBTF ETF will invest primarily in bitcoin futures listed and traded on the CME.
As per the press release, the average daily open interest in the CME’s bitcoin futures has risen from $77 million in the first quarter of 2018 to around $1.5 billion in the third quarter of 2021.
“Investors deserve lower cost, transparent, regulated bitcoin exposures, and we’re pleased to be leading that charge with the launch of XBTF and all of our ongoing efforts in the bitcoin and digital assets space,” stated VanEck director of digital assets product Kyle DaCruz.
The bitcoin futures ETF offering came in the wake of the SEC’s rejection of VanEck’s proposed spot Bitcoin ETF last week. The spot ETF was rejected because it did not meet the SEC’s market manipulation prevention standards.
