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VanEck SolidX Bitcoin Trust urges for approval of ETFs, SEC prolongs

A couple of days ago, NASDAQ was already supporting existing crypto exchanges. It also proclaims a collaboration with cryptocurrency exchange Gemini, founded by one of the pioneer bitcoin investors Tyler and Cameron Winklevoss who are predominant players of Crypto ETFs.

The securities laws and regulations would be an ongoing phenomenon to evolve in lockstep with the industry itself, as well as the role of technology solutions, so as to come up with some viable alternatives - not an easy process.

We recently reported that a New York based asset manager, VanEck, has announced joint venturing with SolidX to list a “physically-backed bitcoin ETF” (exchange-traded fund). The proposed ETF would be indemnified against loss or theft or any damages of bitcoin.

VanEck has pioneered to file for a 40-Act Bitcoin ETF and SolidX was among the first for a physically-backed bitcoin ETF. Regulatory approval has been slow in coming though, as the Securities and Exchange Commission (SEC) has been cautious in moving forward with crypto ETFs. For now, the Securities and Exchange Commission has a new ETF proposal to mull over: a physically backed bitcoin ETF.

VanEck, in partnership with FinTech Company SolidX, is back at it again, trying to be first to market with a physical bitcoin fund, putting in registration the VanEck SolidX Bitcoin Trust (XBTC).

The SEC asked companies to pull about a dozen applications for cryptocurrency-linked products in January, and last year rejected the Winklevoss Bitcoin Trust ETF. SolidX and VanEck were among the companies who had filed to list funds. They hope to have addressed regulators’ concerns with changes they made in the new, joint request by increasing the share price and basing prices off regulated trading firms, according to SolidX Chief Executive Officer Daniel H. Gallancy.

The US Securities and Exchange Commission continues to drag its feet in regards to a Bitcoin or cryptocurrency exchange-traded product. However, Bitwise Asset Management’s global head of exchange-traded products, John Hyland, believes we’ll be seeing the major market catalyst “sooner rather than later.”

When asked by ETF.com about the likelihood of seeing a bitcoin or cryptocurrency ETF in the near future, Hyland responded:

I think we get them sooner rather than later. But I also think that if we don’t see any action by the SEC in the next two months, we’ll jump to 2019 and beyond. I don’t see the SEC going from red light to green light anytime near the midterm election. It’ll make them gun-shy.

I handicap the odds of a U.S. ETP in crypto as follows: 20% chance in 2018; 60% chance in 2019; and a 20% chance beyond 2019.

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