VanEck will give Fairfax County retirement savings exposure to cryptocurrency via crypto lending, and made a new spot Bitcoin ETF filing.
The leading investment asset manager were rejected by the US Securities and Exchange Commission (SEC) on their first attempt to file for a spot Bitcoin ETF in November 2021, which cited possible ‘fraud and manipulation’ of the Bitcoin markets.
On June 29th, 2022 the SEC also rejected a spot Bitcoin ETF application made by Grayscale, who are now pursuing court action. That hasn’t deterred VanEck from making another application in July.
VanEck does already offer a futures-based Bitcoin ETF – the only type the SEC currently permits – as well as offering accredited US investors and offshore investors direct access to Bitcoin.
Pension Fund Crypto Adoption
A press release on July 5th via Business Wire states that $35 million has been committed by two retirement systems in Fairfax County, Virginia, to the VanEck New Finance Income Fund:
‘The investment by the Fairfax County Employees’ Retirement System and the Fairfax County Police Officers Retirement System demonstrates growing institutional adoption of digital assets, as opportunities continue to mature.
Launched in December 2021, the VanEck New Finance Income Fund, LP, is available to accredited investors. The fund is designed to seek income opportunities for investors via short-term lending arrangements with digital assets entities through a simplified approach that alleviates the operational burden of direct digital assets lending. This may also result in potentially lower volatility as compared to direct digital assets exposure.
VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. This philosophy rooted in identification and action is reflected today in our initiatives to further the ongoing development and maturity of digital assets. VanEck has been at the forefront in researching and advocating for this asset class since 2017, in terms of establishing a mature market structure as well as by working closely with global regulatory agencies to provide efficient investment solutions to clients.’
New York based VanEck was founded in 1955 and continues to be a proponent of Bitcoin and cryptocurrency. VanEck have stated approving a spot Bitcoin ETF as a regulated market would be the ‘only consistent outcome’ for the SEC since Bitcoin futures ETFs have been allowed and theirs has been trading successfully since November 2021.
The deadline to approve or reject VanEck’s new spot Bitcoin ETF filing is March 3rd, 2023.
In April 2022 Fidelity Investments also announced the addition of ETFs for crypto assets – including Metaverse ETFs.
This increasing institutional adoption of crypto could be bullish for the price of Bitcoin, which currently is trading back above $21,700, up 6.7% in the past 24 hours.
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