SEC Team Expands With New Derivatives Trading Director Weeks Before Bitcoin ETF Decision

Securities And Exchange Commission Seeks Comments On Another Bitcoin ETF

The US Securities and Exchange Commission (SEC) is trying to receive comments on bitcoin exchange-traded funds – also known as Bitcoin ETFs. The main intention is to receive comments on a proposal that has been made by the Chicago Board Options Exchange (CBOE) so as to trade the so called SolidX Bitcoin Shares. This is a Bitcoin ETF that has been proposed by VanEck SolidX Bitcoin Trust.

According to the document uploaded, the trust will be investing in Bitcoin only. “Assets will consist of bitcoin held by the Trust utilizing a secure process.”

The filing made by the CBOE shows that the Trust will be investing in Bitcoin and shares will reflect the price of the most important and famous virtual currency in the market. The US Securities and Exchange Commission is asking for comments on the proposed rule change from those interested parties.

This ETF is the result of the investment firm VanEck that decided to partner with the blockchain startup known as SolidX. This is the third time that VanEck tries to create a bitcoin investment fund.

Jan van Eck, VanEck CEO commented about that:

“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-backed bitcoin ETF will be designed to provide exposure to the price of bitcoin, and insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin.”

Different companies in the market have tried to list Bitcoin ETFs but none of them has been able to convince the SEC. Indeed, the regulatory agency has forced withdrawals in all the cases. The most important things to take into account are related to the volatility of the asset and its liquidity.

It is also important to mention that the US Securities and Exchange Commission does not want Bitcoin to be an accessible asset to most of the society but only to those who have the possibility to invest on it with big sums of money.

SolidX for example, had a difficult time launching a bitcoin ETF. Back in March 2017, the SEC rejected the company’s application. Additionally, the committee also rejected the Winklevoss twins’ proposal for a similar bitcoin-related fund.

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