Attention attention read all about it, cryptocurrency traders, investors and users to unite around what could be one of the biggest landmark approvals inside the maturing blockchain asset space – exchange traded funds or ETFs!
August 10 is a big moment in time for the long awaited Bitcoin ETF ruling by the SEC – it is the day that the US Securities and Exchange Commission will close public comments concerning the listing and trading of the ETF. In addition to determining the tradability of the ETF, the close of comments will also determine the fate of cryptocurrencies and funds in the crypto market.
As the SEC states on its website concerning the comment period, “Comments on Cboe BZX Rulemaking” regarding “Notice of Filing of Proposed Rule Chance to List and Trade Shares of SolidX Bitcoin Shares Issued by the VenEck SolidX Bitcoin Trust.” The SEC’s proposal is that the listing and trade of SolidX bitcoin-based exchange-traded fund (ETF) will only invest in bitcoin.
Both SolidX and VanEck unified in response and CEO Jan van Eck stated, “We believe that collectively, we will build something that may be better than other constructs currently making their way through the regulatory process. A properly constructed, physically-based bitcoin ETF will be designed to provide exposure to the price of bitcoin, and an insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin.”
One share will be equivalent to 25 bitcoins, making it only available to accredited investors. At this point, the SEC is requesting that interested individuals leave comments. If it does go through, then this will be the first listing of a bitcoin ETF by a company. There are certainly concerns with the listing, such as high market volatility and liquidity and such concerns are what are preventing the SEC from fully getting on board.
Further, the listing will also be a significant shift in the crypto market, which then may be subject to a significant amount of funds pouring into it. And moreover, only accredited investors will be able to invest. Altcoins may also receive the green light as well.