Physically Backed Bitcoin ETF Under Review

3 min read

Bitcoin Exchange Traded Funds (ETF) have so far been the very opposite of a success and more of a struggle. The latest Bitcoin ETF is backed by physical Bitcoin and is currently being reviewed by the Securities and Exchange Commission (SEC).

The Bitcoin ETF is SolidX and VanEck which is dubbed as the VanEck SolidX Bitcoin Trust on the CBOE BZK Exchange. It was delayed to September 30th the last time CBOE applied to list the trust in June.

Unlike the previous Bitcoin ETF’s it will hold physical Bitcoins instead of Cryptocurrency futures contracts, and so will be interesting to see how the SEC objectifies this.

The VanEck-SolidX venture will be covered by comprehensive insurance underwritten by insurance carriers so that investors are protected against potential loss or theft.

The VanEck-SolidX fund will be made up of shares each consisting of 25 Bitcoins, which is currently worth in excess of $160,000 and so is mainly for prominent investors and institutions.

Hence the VanEck-SolidX fund has more chance of being approved as the target sector of prominent investors and institutions are more experienced in terms of investment products. SEC will favour it as they don’t need to account for the loss due to inexperienced investors.

SEC seems to be in two factions as of now. However the commissioner  Hester Peirce is a cryptocurrency ETF supporter and cleared that the SEC should encourage and not hold back on crypto related products.

As of now, however, with the latest update from the SEC, the decision on the CBOE BTC ETF will be delayed due to-

Pursuant to Section 19(b)(2)(B) of the Act,30 the Commission is providing notice of the grounds for disapproval under consideration. The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be “designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,” and “to protect investors and the public interest.

In other words, more opinion will be taken into consideration before a decision is made which seems to be a good sign. ‘Better late than never’ as they say!

According to Twitter user ‘The Crypto Dog’ the BTC ETF decision may take another 180 to 240 days more.

Elite CurrenSea

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