Amidst the continuous rejections of the Bitcoin ETF, the U.S. Securities and Exchange Commission (SEC) offered 9 bitcoin ETF another life-line by re- reviewing their proposals, including SolidX-VanEck ETF application. A ray of hope of impending bitcoin ETF was established when SEC released a memorandum of its meeting with the VanEck, SolidX, and representatives from the Chicago Board Options Exchange (Cboe). Let’s dig a little deeper into the revelations made by the memorandum.
As reported yesterday, the memorandum released by the agency, Pro-crypto Commissioner Elad Roisman shares some details about the meeting she had with the representatives of SolidX, VanEck, and CBOE. VanEck and SolidX have been on the firing line of rejection by SEC, since their first filing for listing on the New York Stock Exchange in 2016. The most recent Bitcoin ETF proposal currently awaits judgment, as the SEC re-reviews and seeks additional input.
The new memorandum outlines a claim by VanEck and SolidX that their product has evolved since their previous ETF application, which was rejected in March 2017 by the SEC, citing the decision to “protect investors and the public interest”. Now that the surrounding market has evolved in favor of cryptocurrency, the proposal is being considered again.
The duo addresses one of the SEC’s chief objections to the earlier proposal and claims that the current physically-backed Bitcoin ETF application is complaint and offers a “straightforward solution” to dangers currently faced by investors. The memorandum stated:
“Approval of the Trust will ameliorate several crucial issues and protect the public interest: Bitcoin is a bearer asset. Holders face operational risk: theft, loss, destruction of cryptographic keys. The solution is to have insurance.”
While clearing their points, the VanEck and SolidX took this opportunity to jab at SEC’s unfair outlook towards the cryptocurrency ecosystem. They said:
“As issuers, we are concerned the SEC staff have created a moving target in their use of the word ‘significant.’ The Staff have never provided guidance as to what ‘significant’ means, enabling them to move the goal post indefinitely.”
In hope that their application finally gets approval, the applicants also claim that today’s Bitcoin market met all of the commission’s criteria as a fully-regulated, and “significant” derivatives market.