[Breaking] The strongest Bitcoin ETF files again with the U.S. SEC! Will SEC Chairman’s doubts be cleared with a new perspective approach!?
The most powerfully considered Bitcoin ETF is being sought by VanEck and SolidX, and the Cboe BZX Exchange, which have presented to the U.S. Securities and Exchange Commission (SEC) the justification for ETF approval, as revealed in SEC official documents. SEC official documents.
Who are VanEck and SolidX? The background of their ETF filings
VanEck is a New York-based investment advisory firm (a major company with assets under management exceeding 38 billion yen), and SolidX is a blockchain software development and financial services provider.
VanEck and SolidX filed for a Bitcoin-based exchange-traded fund (ETF) with the SEC on June 2018 Bitcoin. They submitted an application to the U.S. Securities and Exchange Commission (SEC) for approval.
The SEC, which has shown a strict stance toward cryptocurrency-related ETFs, has postponed two decision dates and is still reviewing the application.
However, in October when the second postponement was decided, the two companies conducted a presentation focusing on the following two points to the SEC: Presentation.
- That a Bitcoin ETF would be compliant with regulations
- That investor protection is adequately provided
Overview of the SEC presentation
As mentioned above, the prior presentation centered on
- That a Bitcoin ETF complies with regulations
- That investor protection is adequate
this time, from the perspective of a “mature Bitcoin market,” they compared existing ETFs (gold, silver, crude oil) with Bitcoin and presented in five stages:
- Existing ETF products (gold, silver, crude oil) vs. Bitcoin
- Important markets
- CBOE’s matching engine capacity and applied analysis
- MVIS Bitcoin OTC trading index
- Appendix
In the presentation, the two companies demonstrated “substantive evidence” across three commodity markets that “spot and futures prices are in alignment (cointegrated).”
They also pointed out that “spot and cash prices are closely linked” and argued that Bitcoin spot and futures likewise fit this pattern, making the case that there is “adequate evidence for functioning capital markets.”Evidence that the market functions well (※2).
The two firms also addressed market manipulation concerns, which SEC emphasizes in evaluating Bitcoin ETF approvals, by citing concrete examples that the Bitcoin ecosystem is less susceptible to manipulation compared with other commodities that already have ETF products.
Bitcoin's ecosystem, compared with other commodities that already have ETF products, is less exposed to manipulation.
They further stated that Bitcoin spot and futures also fit the pattern above, arguing it is a “functioning capital market with sufficient evidence (※2).”
Normally, if insiders in a commodity market could access trading information related to the supply of that product, price impact would be high; but for Bitcoin, such a problem is very unlikely.
This is because attempting to manipulate Bitcoin prices on a single exchange would require manipulating prices on a global scale, which is quite difficult.
To manipulate prices globally, one would need substantial capital, but arbitrage traders spread funds across multiple exchanges, making it impossible to concentrate funds in one place.
Therefore, the likelihood of concentrating funds on a single exchange or OTC platform for price manipulation is extremely low.
SEC stance on cryptocurrency ETFs
The SEC’s stance on cryptocurrency-related ETFs has been strict.
In the past, there was more to come...Continue reading ⇩
