VanEck, a global investment fund manager with $76.4 billion USD in assets under management, announced recently the listing of its spot bitcoin exchange-traded fund (ETF) under the ticker HODL, with Gemini named as custodian.
Both Gemini and VanEck claim that they “have been pioneers in the industry’s efforts to offer a crypto ETF to the investing public.”
VanEck was the first established ETF issuer “to file for a bitcoin-linked ETF, and Gemini founders Cameron and Tyler Winklevoss submitted the first-ever spot bitcoin ETF application in 2013.”
Gemini says it looks forward to supporting VanEck in this momentous step “for the crypto industry: the launch of a US-based spot bitcoin ETF.”
Gemini is to support the industry in “reaching this monumental milestone as custodian for the VanEck Bitcoin Trust (HODL), which was listed on the Cboe BZX Exchange.”
Over the past few months, the discussion of a spot bitcoin ETF has “gathered steam as various leading financial institutions have applied to list the first spot bitcoin ETF in the US.”
VanEck has been a central player in this conversation “for years, previously filing applications in 2021, 2022, and 2023.”
Gemini notes in a blog post that it is “actively partnering with stakeholders, including fund issuers, authorized participants, fund administrators, and regulators to create a robust operational and regulatory framework for spot bitcoin ETFs.”
The SEC had previously pointed “to a lack of visibility into crypto markets and the potential for manipulation as arguments in their denial of a spot bitcoin ETF, but Gemini, along with the crypto industry, has been committed to assuaging the SEC’s concerns.”
Gemini has built new operational workflows and processes “specifically relevant to the US market for both in-kind and cash creation/redemptions. This includes integrating with fund administrators via API to optimize the communication and risk controls between fund issuers, fund administrators, and custodians.”
To support cash creation and redemptions, VanEck will “use Gemini Clearing for delivery and payment of coins and cash. Gemini Clearing is seamlessly integrated with Gemini Custody to optimize for an efficient operational process and risk management.”
In addition, Gemini have worked closely “with fund advisors, exchanges, and regulators on market surveillance sharing agreements (SSAs).”
The Winklevoss Bitcoin Trust application was “the first spot bitcoin exchange traded product (ETP) to include such an agreement.”
Gemini are also committed to “supporting VanEck and other fund partners if new requirements are created under a constructive regulatory framework.”
As noted in the update, Gemini Fund Solutions (GFS) platform is “a provider of custody, clearing/settlement, trading, and other capital markets services specifically designed for crypto ETFs and other funds. In December, Gemini was named as custodian on the 7RCC Global Bitcoin and Carbon Credit Futures ETF application.”
GFS reportedly meets “the industry’s highest financial and security compliance standards. Gemini has completed SOC 1 Type 2 and SOC 2 Type 2 examinations, certified by Deloitte, a fundamental requirement for safely managing financial products.”
Assets custodied with Gemini Trust Company are “segregated for the sole benefit of the fund owners, fully backed 1:1, and separated from other users’ assets. Gemini is fully committed to maintaining the highest regulatory standards as the industry evolves.”
Supporting the VanEck spot bitcoin ETF as its custodian is considered to be “a landmark development for our business as we continue on our mission to unlock the next era of financial, creative, and personal freedom.”