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. IN our opinion, this development seems to be constructive for bitcoin price actions in the days to come.

Several months back, a handful of firms filed to list crypto ETFs just as the trading of Bitcoin futures contracts, on both the CME and the CBOE, were queuing up. The SEC responded with a series of questions for the industry instead of approving the BTC ETFs.

Historically, as BTC price was almost about to break through with constructive news and the Winklevoss ETF that could have been approved, But US SEC didn’t approve, thereby, it only sounds like this type of price behavior will continue.

According to VanEck, their ETF will have SolidX act as the sponsor of the ETF and VanEck will provide marketing services.

“I believe that bitcoin has emerged as a legitimate investment option, as a type of ‘digital gold’ that may make sense for investors’ portfolios,” said Jan van Eck, CEO of VanEck. “The SolidX team has in-depth experience with bitcoin, cryptography, and capital markets. We’re pleased to join with them in supporting the effort to bring a physically-backed bitcoin ETF to market. We believe that collectively we will build something that may be better than other constructs currently making their way through the regulatory process,” continued van Eck. “A properly constructed physically-backed 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.”

In April, the CBOE countered the SEC’s concerns in another public letter saying;

“We believe that the vast majority of these concerns can be addressed within the existing framework for commodity-related funds related to valuation, liquidity, custody, arbitrage, and manipulation. As the cryptocurrency markets and infrastructure continue to grow and mature, especially in the spot markets and regulated cryptocurrency derivatives markets, the more easily they will fit within this existing framework.”

In brief, the CBOE told the SEC to stop pumping the brakes and to push forward with crypto innovation. Courtesy: crowdfundinsider

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