Updated 17 Nov, 2021

VanEck, Third Bitcoin ETF, Lands for Trading on Wall Street

A New York sign on a grey background reading Wall Street -VanEck, Third Bitcoin ETF, Lands for Trading on Wall Street

Key Takeaways:

  • VanEck, the third Bitcoin exchange-traded fund, makes trading debut on Wall Street
  • As mainstream adoption of cryptos grows quickly, traditional investors cheer bitcoin products

VanEck, the Third Bitcoin ETF, Now Trades on Wall Street

The third bitcoin exchange-traded fund, VanEck, is now trading among stocks and other assets on Wall Street. About a month after the first-ever Bitcoin ETF, packaged by ProShares, arrived to the stock market, investors cheered the landing of VanEck. This said, the second Bitcoin-focused fund, the Valkyrie Bitcoin ETF, made its debut a few days after the ProShares Bitcoin product.

Now, the VanEck Bitcoin-centered exchange-traded fund will be offering investors the chance to hold bitcoin futures. In other words, they will buy shares of futures contracts, and not actual bitcoin. The first two bitcoin ETFs are also offering the same type of bitcoin derivatives.

The ProShares fund, the first to hit the stock market, accumulated about $1 trillion in assets in its first two days of trading.

To this end, a true spot bitcoin ETF is still far from winning regulatory approval. Moreover, the Securities and Exchange Commission poured cold water on VanEck’s application for a spot Bitcoin ETF. In practice, a spot Bitcoin ETF would allow investor to buy bitcoin at its current market price, or “on the spot.”

Broader Crypto Adoption Continues to Grow

Kyle DaCruz, head of the crypto department at VanEck, said a “physically backed bitcoin ETF remains a key goal.” However, he highlighted the firm is “very pleased to be providing investors with this important tool as they build their digital asset portfolios.”

Still, the third addition to the family of Bitcoin ETFs on the US stock market will be trading with the “XBTF” ticker. It promises to be the lowest-cost Bitcoin ETF out in the market right now.

Against this backdrop, traditional investors maintain their appetite for bitcoin products on the stock market. As Bitcoin derivatives, like BTC futures, are becoming increasingly popular, the crypto market continues to expand.

Further, after a third Bitcoin-focused product is trading in the mainstream market, many investors are learning more about Bitcoin, and cryptos. Not only that, but also institutions get exposure to the fast-developing crypto market. As a result, adoption spreads and digital assets are quickly making their way into traditional portfolios.

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