Bitcoin ETF News: SEC Begins Reviewing VanEck and SolidX Proposals

The latest news update pertaining to Bitcoin ETF is that the U.S. Securities and Exchange Commission (SEC) announced on September 20 that it has formally begun reviewing the physically-backed Bitcoin ETF proposed by SolidX and VanEck. The SEC will now consider whether it should approve the fund – the VanEck SolidX Bitcoin Trust, for listing on the CBOE BZX exchange.

The timing of this SEC order comes somewhat of a surprise to crypto enthusiasts. The SEC postponed its decision on the said application setting a new deadline of September 30. A lot of analysts were speculating that the SEC is likely to delay its ruling on the fund more than once, until March 2019.

The latest news update as per the SEC order does delay the ruling, but it moved the timeline of the ruling a little since it came before the stipulated deadline of September 30. The proposed VanEck – SolidX fund unlike most proposed Bitcoin ETFs, would hold actual BTC called “physical bitcoin”, rather than cryptocurrency futures contracts. To protect investors against theft or loss of the Trust’s bitcoin, the fund would also maintain comprehensive insurance underwritten by various insurance carriers.

Each share would represent 25 BTC, although the fund would technically be available to retail buyers. The fund would be restricted primarily to wealthy institutions and investors. The SEC did this by design, as it had been especially cautious about making investment products that it considers risky more accessible to unsophisticated buyers, as mentioned in the CCN report.

The SEC provided the latest news update pertaining to the Bitcoin ETF in its order by mentioning that it has received more than 1,400 comments on the proposed rule change. It requested in its order that interested individuals should provide written submissions of their data, views and arguments with respect to the issues that’s been identified. They can also mention any other concerns that they may have with the proposal. The SEC, in particular, has invited written views of interested persons concerning whether the proposal is consistent with Section 6 (b) or any other provisions of the Act, as stated in the SEC order.

The post Bitcoin ETF News: SEC Begins Reviewing VanEck and SolidX Proposals appeared first on OWLT Market.

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