The Chicago Board Options Exchange (CBOE) and asset managers VanEck, re-submitted an application to list a Bitcoin exchange-traded fund (ETF) on one of its trading platforms, just days after the firm withdrew its previous bid. The shutdown of the US government and the lack of staff members at the US Securities and Exchange Commission (SEC) to continue discussions on the prospect of the approval of a Bitcoin ETF, was the reason VanEck thought it prudent to withdraw its initial application.
The SolidX Bitcoin Collaboration
SolidX Bitcoin is a collaborative effort between VanEck and SolidX . If scaled through, it would allow wealthy investors and traders to invest in Bitcoin through a SEC-regulated vehicle.
VanEck digital asset head, Gabor Gurbacs, made the announcement on Twitter, saying: “The VanEck SolidX Bitcoin ETF proposed rule-change has been submitted by CBOE. Hard work by all teams involved”.
The SEC Has Previously Rejected Many Bitcoin ETFs
The SEC has rejected many Bitcoin ETFs and has been wary of allowing retail investors to gain access to cryptocurrency through SEC-regulated investment vehicles. Their reservations include a lack of regulation in overseas markets, surveillance and investor protection and preventing manipulation in the crypto markets.
The SolidX Bitcoin ETF differs from other attempts because it bases the price of Bitcoin on the over-the-counter (OTC) market through an index. No ETF in the past has attempted to use the OTC market to find the base price of Bitcoin and this ETF will only make shares available for wealthy individuals.
Gurbacs said that OTC trading desks could meet the requirements set forth by the SEC. However, he did emphasise that this was his personal view.
“The OTC trading desks are more robust, efficient and liquid, as well as better regulated, than most of the crypto trading platforms. They are an important and often unsung heroes in institutional crypto space.”Supporters of a Bitcoin ETF believe that it will bring new money into the space, creating a more liquid market, and they will be watching this very closely.