The SEC Is Seeking Comment on Yet Another Bitcoin ETF
The U.S. Securities and Exchange Commission (SEC) is once again seeking comments on potential bitcoin-based exchange traded funds (ETFs).
Make us preferred on Google
The U.S. Securities and Exchange Commission (SEC) is once again seeking comments on a potential bitcoin-based exchange-traded fund (ETF).
The securities regulator called for comments on a proposal by the Cboe to list and trade the SolidX Bitcoin Shares, an ETF that was in turn proposed by the VanEck SolidX Bitcoin Trust, according to documents published Tuesday.
The trust will invest in bitcoin only, the document notes - as its net assets will "consist of bitcoin held by the Trust utilizing a secure process."
The Cboe's filings indicate that the Trust will invest solely in bitcoin and shares in the vehicle will subsequently reflect the world's largest cryptocurrency's price. While its operators will buy or sell bitcoin as needed, "the Trust is not actively managed," according to the document.
SEC is asking for comments on this proposed rule change from "interested persons."
As previously reported by CoinDesk, this particular ETF is the result of investment firm VanEck partnering with blockchain startup SolidX. It is VanEck's third attempt to create a bitcoin investment vehicle.
VanEck CEO Jan van Eck said he believes bitcoin is "a legitimate investment option, as a type of 'digital gold' that may make sense for investors' portfolios," despite regulatory hurdles they've met previously.
"We believe that collectively we will build something that may be better than other constructs currently making their way through the regulatory process. A properly constructed physically-backed bitcoin ETF will be designed to provide exposure to the price of bitcoin, and an insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin," he told CoinDesk at the time.
While various companies have attempted to list bitcoin ETFs in the past, the SEC has forced withdrawals in every case. The regulator has previously stated that it is concerned with the cryptocurrency's volatility and liquidity, among other issues.
Bitcoin image via Shutterstock
Más para ti
Trump-linked WLFI's Zak Folkman teases forex platform at Consensus Hong Kong
Folkman says more details will be revealed soon at an event at Mar-a-Lago
Lo que debes saber:
- World Liberty Financial, a Trump-family-linked crypto project, plans to launch a foreign exchange platform called World Swap as part of its USD1 stablecoin ecosystem.
- Co-founder Zak Folkman said World Swap aims to simplify cross-border transfers and challenge traditional remittance providers that charge fees of 2% to 10% per transaction.
- The company is building a broader financial stack around its cash-backed USD1 stablecoin, including the recently launched World Liberty Markets lending platform, which has attracted hundreds of millions of dollars in deposits.
