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Asset management firm VanEck amended its spot Bitcoin (BTC) exchange-traded fund (ETF) application with the U.S. Securities and Exchange Commission (SEC) on Oct. 27.

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.

Scott Johnson, a financial lawyer, highlighted that VanEck’s filing indicates a distinct strategy to seed its ETF with Bitcoin. This approach notably diverges from the seeding method employed by its competitor, BlackRock.

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.

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

Over the past week, the flagship digital asset touched a yearly high at more than $35,000 due to the renewed optimism surrounding the possibility of approval for a spot BTC ETF by the SEC.

Data from CryptoSlate shows that it is currently trading at $34,754 as of press time, up by nearly 30% during the past month.

The post VanEck’s amended Bitcoin ETF filing reveals unique seeding approach as BTC approaches $35K appeared first on CryptoSlate.

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