As a seasoned crypto investor with over a decade of experience in the industry, I view VanEck’s announcement as a significant step forward for institutional adoption of Bitcoin and other cryptocurrencies. The addition of Coinbase as a custodian for the VanEck Bitcoin Trust is a testament to the growing maturity and legitimacy of the crypto market.
As a crypto investor, I’m excited to share that on Friday, June 28, VanEck made an important announcement regarding its Bitcoin Trust. They named Coinbase as an additional custodian for their HODL Bitcoin ETF. This means that Coinbase will now play a key role in safeguarding the trust’s Bitcoin holdings, alongside specific terms and safeguards outlined in the agreement. For Coinbase, this is a significant achievement as they were already serving as custodian for eight other Spot Bitcoin ETFs, such as those by BlackRock, Bitwise, and Grayscale.
VanEck’s Terms For Handling Of HODL Bitcoin ETF Reserve
Coinbase, the latest custodian for the VanEck Bitcoin Trust, is responsible for keeping most of the Bitcoin assets in offline storage. This approach significantly boosts security by keeping the Bitcoin away from potential cyber attacks. However, there’s a small exception – the Bitcoin may be transferred online when necessary for processing withdrawal requests.
As a researcher studying the SEC filing related to Coinbase and VanEck’s Bitcoin arrangement, I can explain it this way:
As a crypto investor using Coinbase’s services, I understand that the agreement underlines Coinbase’s obligation to accurately account for and identify the Bitcoin held on my behalf in their books as part of the Trust. Moreover, it is clearly stated that Coinbase cannot withdraw, lend out, use as collateral, or transfer control of the Trust’s Bitcoin without explicit authorization from me or the Trust itself.
VanEck has carefully reviewed Coinbase’s security practices for safeguarding the Bitcoin held in trust on their platform. Although these precautions align with industry norms, VanEck recognizes that it lacks direct control over Coinbase’s operations and the execution of these safeguards. As a result, there is no ironclad guarantee that the measures will effectively shield the Trust’s Bitcoin from potential theft, loss, or damage.
Coinbase provides insurance for its customers’ assets against certain incidents such as fraud or theft. However, this coverage does not safeguard against decreases in the value of Bitcoin and is collectively shared among all Coinbase users. Previously, VanEck opted for Gemini as their preferred custodian during the Bitcoin ETF debut in January.
Solana ETF Application
Previously, on June 27, VanEck drew attention with its Solana ETF application. The firm submitted a Form S-1 filing to the U.S. Securities and Exchange Commission (SEC) with the intention of creating a Solana Trust. This trust would serve as the foundation for an exchange-traded fund (ETF) that mirrors Solana’s current market price. If this proposal is endorsed, the resulting Solana ETF will be accessible for trading on the Cboe BZX Exchange.
Moving forward, Matthew Sigel, head of digital asset research at VanEck, expressed his excitement about the debut of the first Solana-themed ETF in the US market. Sigel highlighted that SOL, the native token of Solana, functions similarly to digital commodities such as Bitcoin and Ethereum.
He also mentioned that it serves the purpose of covering transaction fees and providing computational services on the blockchain, similar to ether on Ethereum. It can be exchanged on digital asset platforms or employed in direct transactions. Following this, on June 28th, 21Shares applied for a Solana Spot ETF.
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2024-06-29 12:45