VanEck is to launch an actively managed exchange-traded fund (ETF) that invests in bitcoin-linked derivatives, the VanEck Vectors Bitcoin Strategy ETF, according to a Securities and Exchange Commission filing.
The fund will not directly invest in bitcoin, but rather in US exchange-traded bitcoin-linked derivative instruments, pooled investment vehicles and exchanged-traded products that provide exposure to bitcoin.
While a management fee and portfolio management team have not been decided for the fund, the company warned that investors in the fund should be willing to accept a high degree of volatility in the price of the fund’s shares and the possibility of significant losses, given bitcoin is a new technological innovation with a limited history.
A VanEck spokesman confirmed the contents of the filing, but declined to comment further.
In March, the SEC rejected an application from VanEck's Tyler and Cameron Winklevoss (pictured above) , the twin brothers famous for their dispute with Facebook founder Mark Zuckerberg, to let the Winklevoss Bitcoin Trust trade on the Bats exchange.
The agency rejected the fund on the grounds that the exchange would be unable to enter into necessary surveillance-sharing agreements, given that bitcoin is not regulated by any government.
Bitcoin plummeted as much as 18% immediately after the SEC rejected the Winklevoss twins’ ETF proposal.