Entities seeking to launch a Bitcoin ETF (exchange-traded fund) met with the US Securities and Exchange Commission (SEC) October 23 as one commissioner spelled out the expectations in fresh media comments.
5 Key ‘Issues Resolved’
VanEck, which received a rejection of its ETF application in late August, met with the SEC to discuss its status, producing a supporting document outlining five reasons for approval.
“Issues identified in disapproval order have been resolved,” it states.
There now exists a significant regulated derivatives market for bitcoin
Relevant markets – Cboe, bitcoin futures, OTC desks – are regulated
Concerns around price manipulation have been mitigated, consistent with approval of prior commodity-based ETPs
Cboe’s rules are designed to surveil for potential manipulation of Trust shares
Promotes investor protection.”
Stein Highlights Points Of Consideration
Speaking to Bloomberg TV Monday meanwhile, SEC Commissioner Kara Stein underscored the uncertainty over whether or not ETFs will soon see regulatory approval.
Multiple applications to launch have stalled at the SEC’s door, authorities either rejecting or postponing their decision regarding whether or not investors can legally interact with them.
“They’re going to have to show how they can get accurate valuations… despite sometimes volatile price swings, how they can make sure there’s physical custody when necessary,” Stein told the network.
How they’re going to make sure there’s adequate liquidity, especially in a 40 act fund context so investors can get their money… we’ll look at all those factors and make a decision on that particular fund and how it’s actually going to be able to handle those particular requirements.
2019 Or Sooner?
After the initial round of rejections and delays, attention from cryptocurrency analysts and investors turned to other financial products aimed at institutional investors and their capital.
As Bitcoinist reported, multiple Wall Street heavyweights are planning to release cryptocurrency products in the short term, Intercontinental Exchange this week confirming it would launch its Bakkt platform December 12 – again subject to regulatory approval.
ETFs and their potential to shore up cryptocurrency markets meanwhile remain a talking point more generally, with various predictions surfacing that 2019 will be the make-or-break year for the instrument.
Andreas Antonopoulos, while remaining skeptical on the benefits of an ETF for Bitcoin’s reputation, nonetheless forecast that their market entry was a certainty.
“…There’s enormous market appetite and very little technical knowledge, so institutional investors simply can’t at the moment hold Bitcoin directly.” he said in July.
Stein declined to speculate on possible timeframes for an ETF approval to come from the SEC.
Does the VanEck/SolidX Bitcoin ETF now habe a higher chance of approval? Let us know below!
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