CBOE VanEck SolidX Bitcoin ETF Seeks Different Outcome Than Winklevoss' Appeal Denial

SEC Might Approve A Bitcoin ETF

The SEC has always had a heavy role in deciding the future of Bitcoin within the United States. From the onset of their position on the cryptocurrency, the opinions of the agency seem to have flip-flopped on a near-weekly basis. This isn’t particularly surprising, considering the quickly-changing nature of the cryptocurrency markets, or the deeply-entrenched sense of bureaucracy which precludes much of the progress in American institutions.

But the most recent question which has once again asked for the adjudication of the Securities and Exchange Commission is whether any company will be allowed to begin offering a Bitcoin ETF. An ETF is functionally a security that allows people to bet on the increase or decrease in value of a certain security or commodity. For Bitcoin, it would allow investors on Wall Street to take their fiat money and either long or short the digital currency, depending on how they feel the market might go.

But the SEC has been slow to embrace any kind of Bitcoin ETF. This past week, a group of five Bitcoin ETF proposals were given a postponement in decision by the U.S. regulator, with little reasoning given as to why. Shortly following that mellow decision, the agency came down hard on another proposal, rejecting it entirely. The Winklevoss Twins had proposed a Bitcoin ETF again earlier this year, the second time they have done so in the past two years. This means that only one application still in the works has not been decided upon—and it might just be a winner.

Winklevoss Rejection

The SEC flat rejected this application, mainly on the grounds that the proposition did not meet the qualifications necessary to effectively prevent manipulation or fraud within the Bitcoin market. Additionally, the commission applied similar surveillance standards to the Bitcoin ETF proposition, ruling that they would be rejected because they failed to enter an acceptable surveillance agreement with an acceptably-sized Bitcoin exchange.

Furthermore, the SEC ruled that the markets for Bitcoin constitute “regulated markets” of “significant size,” yet another standard typically applied to other ETFs when they seek regulatory approval by the SEC. This rejection is significant, because it again codifies the previously-considered rule—Bitcoin ETFs will be held to the standard of any other ETF seeking approval from the SEC.

CBOE Possibility

Despite the grim outlook for the Winklevoss ETF proposal, the CBOE proposal for a Bitcoin ETF still might have a shot. It is clear from its rejection pattern that, due in no small part to the lack of significance in the size of most Bitcoin markets, investor security plays a massive role in the decisions the SEC makes in regards to its ETF approvals.

CBOE has a history of successful interactions with the SEC, having been regularly recognized as compliant on multiple fronts. They are run by a massive and respected money management company with provided insurance of up to USD $125 million for the digital assets. The insurance of investors, as well as the targeting of higher- net worth individuals, are both important parts of the SEC’s deliberation that CBOE seems to have on its side.

On the other hand, the SEC seems deeply interested in the logistical security measures, such as surveillance and agreements with major exchanges that operate as the backdrop and foundational elements of investor security in an unsecure market. In these respects, it will require that the SEC look deeply into the nature of the proposal in front of them.

The implications would be significant for the crypto-markets, especially if the SEC rules in favor of CBOE and approves their Bitcoin ETF proposal.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitfinex & Tether Class Lawsuit Revised; Adding Bittrex and Poloniex to Alleged BTC Price Manipulation

Revised lawsuit on Bitfinex’s alleged price manipulation of the market using Tether (USDT) during the 2017 bull run to $19,800 has added two...

‘Masked Hero' Calling to ‘Buy Bitcoin' Amidst the Peaceful Protests and Riots in the US

Bitcoin is taking an active part in the riots across America. People are protesting since last week over the death of George Floyd,...

DiversiFi, Formerly Ethfinex, Launches Its DEX 2.0 With Starkware; Processing 9,000 + TPS

Bitfinex sister decentralized exchange, DEX in short, DiversiFi, which relabeled from Ethfinex in August last year, announced a relaunch of their platform, now...

Bitcoin Difficulty Sees 2nd Largest Drop of 2020 to 9.29%; Hashrate & Price Continue to Dance

Today, the bitcoin network difficulty took a drop of 9.29% to 13.73 trillion, as per Coinwarz. This is the fourth downwards adjustment this year after...

Japan’s Top Banks Join Crypto Exchange-Led ‘Study Group' to Discuss Digital Payment System

Three Japanese banking industry heavyweights are joining arms in a study group to focus on digital payment settlement networks in the country. The...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today