min to read

2019-09-18 14:18:11




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Bitcoin etf is not yet to come - VanEck and SolidX have withdrawn their application

SEC vs BTC

min to read

2019-09-18 14:18:11

The struggle of the bitcoin industry for the possibility of launching a cryptocurrency-linked exchange-traded fund (ETF) will probably not end soon.

The struggle of the bitcoin industry for the possibility of launching a cryptocurrency-linked exchange-traded fund (ETF) will probably not end soon. VanEck and SolidX application, considered the most likely candidate for approval, was withdrawn due to ongoing uncertainty of the US Securities and Exchange Commission (SEC).

 

VanEck and SolidX planned to place bitcoin ETF on the Chicago Options Exchange (Cboe). However, as follows from the notification published on Tuesday, September 13, the latter withdrew the application for a rule change, which, in case of approval, would allow launching the corresponding tool.

 

Previously, the SEC postponed the decision on VanEck and SolidX application several times. The last time this happened was in August, when the decision on bitcoin ETF from Bitwise Asset Management and Wilshire Phoenix was also postponed.

 

The final deadlines for decision making on Bitwise and VanEck / SolidX applications were on October 13 and 18, respectively. A decision on Wilshire Phoenix application is due on September 29.

 

It should be noted that over the past few years, various companies have sought approval from the SEC to launch exchange-traded funds, but each time the regulator refused. Most often, the reasons for the negative decision were explained by the risks of market manipulations and insufficiently developed market control instruments.

 

It is also remarkable that in early September there was unconfirmed information in the media that VanEck and SolidX intended to launch bitcoin-based exchange-traded investment funds in a limited format without waiting for the SEC approval.

 

It is traditionally believed that the launch of such an instrument will help attract a wider range of institutional investors and, accordingly, will have a positive impact on the price of bitcoin. However, if in the past, the previous SEC failures often led to a decline in quotations, recently the market has practically stopped responding to such news. This case was no exception - the price of bitcoin over the past day, according to CoinMarketCap, fell by only 0.01%, and at the time of publication the first cryptocurrency was trading at about $10,250.

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