Bitcoin ETF to launch on November 16: VanEck Bitcoin Strategy ETF (XBTF). XBTF is an actively managed exchange-traded fund that targets capital appreciation. By investing in standardized, cash-settled bitcoin futures contracts. VanEck announced the expected launch of the VanEck Bitcoin Strategy ETF (XBTF) today, November 15. On November 16, 2021, XBTF is slated to go public on the Cboe. XBTF enters the market as the lowest-cost bitcoin-linked exchange-traded fund (ETF). With a net expense ratio that is 30 basis points (bps) cheaper than the next closest competitor1. It is structured as a C-Corp. In which may result in a more favorable tax environment for long-term investors.
Investors can now gain exposure to bitcoin futures through the VanEck Bitcoin Futures ETF (XBTF). Which joins VanEck Inflation Allocation ETF (RAAX) as the first U.S.-listed exchange-traded fund (ETF) to do so. Since January 2021, RAAX has held interests in a number of additional bitcoin-related products.
VanEck’s XBTF actively managed by Greg Krenzer, who is also the company’s Head of Active Trading. Mr. Krenzer joined the firm in 1994 and has more than two decades of experience trading. In a wide range of asset classes, including the futures market, among other things. A significant portion of the Fund’s assets will allocated to bitcoin futures contracts. That listed and traded on the CME, a category that experienced enormous development. Over the previous three and a half years. It estimated that average daily open interest in bitcoin futures at the CME will climb from $77 million. In Q1 2018 to about $1.5 billion in Q3 2021, an increase of more than thrice.
Physically backed bitcoin ETF remains a key goal
We are delighted to be providing investors with this important tool as they build their digital asset portfolios.” Said Kyle DaCruz, Director, Digital Assets Product at VanEck. “While a ‘physically backed’ bitcoin ETF remains a key goal, we are thrilled to be providing investors. With this important tool as they build their digital asset portfolios.” For investors, cost and tax treatment are two critical factors to consider. We have placed them at the forefront of the design of XBTF.” The launch of XBTF. As well as all of our ongoing activities in the bitcoin and digital assets arena, will help to bring lower-cost. Transparent, regulated bitcoin exposures to investors. We thrilled to is leading the charge in this regard.”
With a net expense ratio of 0.65%, XBTF traded on the Cboe market. Among the services provided by State Street are ETF basket operations. Custody of ETF shares, fund accounting, order-taking, and transfer agent representation.
In a statement, Nadine Chakar, head of State Street Digital, said. “We are thrilled to be working with VanEck to launch the XBTF ETF.” In order to help drive innovation and address the industry’s evolving shift to digital finance. We created State Street Digital, a newly launched division. As part of our broader strategy for the crypto and digital assets environmen. And we are continuing to prioritize developing our servicing capabilities. Our historic cooperation with VanEck on this major fund launch will strengthened further. Also, we look forward to working with them.”
VanEck has long been a digital asset pioneer
VanEck has long been a leader in the digital assets area, and the company. Led by CEO Jan van Eck, was the first asset manager to file an application. For the launch of a bitcoin futures exchange traded product, which eventually approved. When the company realized that digital assets may serve as a store of value alternative. To existing currencies and gold, it invested in technology solutions that could also help lower costs. In the payments and financial investment industries.
A significant amount of cutting-edge research produced by VanEck in the digital assets field. Including a useful primer for both individuals and advisors on what investors should know about bitcoin futures. For the time being, VanEck is offering a variety of digital assets-related exchange-traded products (ETPs) in Europe. As well as a rising number of digital assets benchmark indices through its index subsidiary, MVIS.