By
Chimamanda U. Martha
April 26th, 2024
If approved, VanEck’s filing would establish one of the first spot Bitcoin ETFs in the United States.
Financial services firm VanEck has filed the Registration of Certain Classes of Securities Form 8-A with the Securities and Exchange Commission (SEC) for a spot Bitcoin exchange-traded fund (ETF). This crucial filing registers securities in compliance with Section 12 of the Securities Exchange Act of 1934.
If approved, VanEck’s filing would establish one of the first spot Bitcoin ETFs in the United States. The ETF would hold Bitcoin directly, allowing mainstream investors convenient exposure to the cryptocurrency as an asset class without having to custody Bitcoin themselves.
What Is Form 8-A?
Form 8-A is a regulatory requirement for companies seeking to register securities before publicly listing them on a securities exchange. The form provides details about the securities for investors and regulators, including the security type and name, number of authorized securities, distribution information, terms of the securities, and description of the trading market.
Additionally, Form 8-A discloses specifics about the issuing entity, such as the company’s name, address, state of incorporation, and primary Standard Industrial Classification (SIC) code. Importantly, while filing Form 8-A registers securities, it does not mean automatic approval. The SEC must still sign off on allowing the issuer to offer exchange-traded securities.
Pathway to the Bitcoin ETF
Launching an ETF is a lengthy, complex process with several procedural steps. Issuers must submit a proposed rule detailing the structure and mechanics of the intended securities The SEC then conducts a thorough review before deciding whether to allow public trading.
The SEC has denied many spot Bitcoin ETF proposals so far, worried about risks like fraud and manipulation in Bitcoin markets. However, the regulatory climate appears to be shifting. Improved liquidity, regulated futures markets, and mainstream Wall Street interest have softened the SEC’s stance on crypto.
Major players like Fidelity, BlackRock, and Grayscale are seeking approval for Bitcoin ETFs. Meanwhile, a deadline looms for the SEC to greenlight or reject several filings from January. Given the rise of institutional activity around crypto in 2023, hopes run high that the SEC could finally approve them.
Impact of Potential Approval on the Crypto Ecosystem
The lack of a Bitcoin ETF has not slowed the overall adoption of cryptocurrencies. However, approval in the United States could rapidly accelerate institutional and retail investment. It offers a regulated vehicle that aligns with investors’ approach to traditional asset classes. Led by major players like VanEck and BlackRock, Wall Street has taken an “if you can’t beat them, join them” approach as cryptocurrencies continue to grow.
Major banks have also begun allowing crypto services after years of skepticism. If approved in 2024, a spot Bitcoin ETF would mark a watershed moment for mainstream acceptance. It could funnel billions of dollars into digital assets, as many analysts have predicted, pushing prices higher. As crypto solidifies its status as a new institutional asset class, ETFs may ultimately end up boosting long-term maturity and stability.
