SEC Delayed Decision on VanEck-SolidX Bitcoin ETF Proposal
Though US Securities and exchange Commission (SEC)has got roughly 1,400 general public comments regarding the Van Eck/Solid X Bitcoin ETF proposal. Despite these immense inputs from the crowd the Commission is seeking more feedback from the public as it feels this much feedback is not sufficient to reach any conclusion.
And this is the reason the U.S. Securities and Exchange Commission (SEC) has once again delayed its verdict on VanEck/Solid X backed exchange-traded fund (ETF).
Commission’s before coming to any conclusion wish to acquire comments that answer.
What are commenters’ views of the Exchange’s assertions that bitcoin is arguably less susceptible to manipulation than other commodities that underlie ETPs; that the geographically diverse and continuous nature of bitcoin trading makes it difficult and prohibitively costly to manipulate the price of bitcoin; that trading on inside information regarding bitcoin is unlikely; that the fragmentation across bitcoin markets, the relatively slow speed of transactions, and the capital necessary to maintain a significant presence on each trading platform make manipulation of bitcoin prices through continuous trading activity unlikely.
Meanwhile, VanEck director Gabor Gurbacs commented on the delay, he expressed his views on the response he received so far.
“I am humbled and impressed by the public support of the VanEck-SolidX initiative to bring to market a well-constructed, liquid, physical, insured Bitcoin ETF. 1400+ comments, 99%+ in favor. The public has spoken! Bitcoin is compatible with the U.S. and global capital markets.”
After the SEC’s order is registered the crowd has 21 days to respond. On this SEC secretary Brent Fields wrote in the order:
“Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. The institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.”
Under the terms of the proposal, VanEck and SolidX would list shares. The SEC has already delayed making a decision on the matter once, and can potentially delay making a final decision under existing regulations.
The Van Eck/Solid X proposal was put forth during the early June. Their Next deadline for a decision is expected to be published soon and more comments are expected from the public. Though, Chervinsky expects the SEC to postpone their decision to somewhere in February/March 2019.