Major asset manager VanEck is betting big on Bitcoin with its latest regulatory filing to launch a spot bitcoin exchange-traded fund (ETF). And the company is also showing its familiarity with crypto culture by choosing “HODL” as the ticker symbol for the proposed fund.
For an explanation of the origin of HODL, check here.
Keypoints
- VanEck has chosen “HODL” as the ticker symbol for its potential Bitcoin ETF
- HODL is a popular mantra in crypto that is a misspelling of “Hold”
- VanEck first applied for a Bitcoin ETF in 2018 but has faced denials from the SEC so far
- Analysts believe the SEC could finally approve a Bitcoin ETF in early 2024
- Rival firm Fidelity chose a more conservative “FBTC” ticker for its proposed Bitcoin ETF
The filing with the Securities and Exchange Commission (SEC) reveals that VanEck has opted for the popular crypto community slogan “HODL” which is a legendary misspelling of the word hold. Rather than selecting a more conservative ticker featuring “BTC,” VanEck is clearly appealing directly to die-hard Bitcoin believers with its tongue-in-cheek acronym selection.
“Retail [investors] who knows crypto space will love the ticker,” said ETF Store President Nate Geraci on Twitter. “Boomers will have no idea what it means.”
I like this play…
Retail who knows crypto space will love the ticker.
Boomers will have no idea what it means, so won’t attract negative attention on advisor statements (plus a lot of advisors preach “HODL” in other asset classes anyways).
Good straddle here.
— Nate Geraci (@NateGeraci) December 8, 2023
VanEck has sought approval for a Bitcoin ETF since 2018 along with other firms, but its previous applications were denied by the SEC. However, crypto analysts broadly believe the regulatory body could finally give the green light as early as Q1 2023. An ETF would make investing in digital assets far more accessible for mainstream investors.
The HODL ticker pits VanEck favorably against asset management rivals like Fidelity, which chose “FBTC” for its proposed fund. Industry observers note that VanEck is likely aiming to stand out from the pack while also insulating itself from negative feedback compared to a more overt “BTC” ticker.
Of course, HODL also signals that VanEck is ready to ride out volatility and take the long-term view on Bitcoin. The recent crypto market crash slashed BTC prices by over 70% from all-time highs in late 2021, underscoring the extreme swings that crypto investors must stomach.
HOLD UP ???? https://t.co/IuVbsfLSVS
— VanEck (@vaneck_us) December 8, 2023
But with over $55 billion in assets under management, VanEck has the heft and experience to back its ambitious Bitcoin ETF play. An SEC green light would spur massive inflows to not just Bitcoin but Ethereum and other digital assets as well.
The “for the culture” HODL ticker shows that VanEck is ready to embrace crypto rather than simply capitalizing on the latest trend. We’ll soon find out whether the SEC shares VanEck’s optimistic long-term outlook.
