VanEck’s amended Bitcoin ETF filing reveals unique seeding approach as BTC approaches $35K

Unique seeding method

The amended filing has drawn heightened interest from the crypto community, who pointed out its unique seeding method.

Seeding is the initial funding required for the launch and accessibility of an ETF. This fund is used to facilitate the creation of units that form the foundation of the ETF, enabling the subsequent offering and trading of shares on the open market. It is usually a very modest sum to initiate the ETF’s operations.

The amended filing shows an unnamed investor acquired the fund’s Seed Creation Baskets in October. It’s important to note that each Seed Creation Basket contains 50,000 ETF shares bought with the top cryptocurrency at a rate determined by the MarketVector Bitcoin Benchmark.

The filing added:

“When the Trust sells or redeems its Shares, it will do so in blocks of 50,000 Shares (a “Creation Basket”) that are based on the amount of bitcoin represented by the Creation Basket being created, the amount of which is equal to the combined net asset value of the number of Shares included in the Creation Basket.”

Aside from the distinct seeding method, Johnson said VanEck’s amended filing had a similar language to that of Blackrock’s, saying:

“[The filings are] perhaps not too surprising given both issuers are represented by the same lawyers at Clifford Chance.”

VanEck’s recent amendment to its application aligns it with other contenders such as BlackRock, Ark 21Shares, and Bitwise. This series of application updates signifies an ongoing and substantive dialogue between regulatory bodies and prospective ETF issuers.

BTC makes play for $35k

Meanwhile, BTC’s price is trying to reclaim the $35,000 mark after a subdued price performance over the weekend.