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SEC Commissioner Roisman Reviews Bitcoin ETFs

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Bitcoin ETF US SEC

We may be closer to Bitcoin ETF approval.

The US SEC just published a memorandum from its meeting with VanEck and SolidX regarding the proposed Bitcoin exchange-traded-fund (ETF).

One Step Closer to ETF Approval?

In a recent meeting with the US SEC, SolidX and VanEck emphasized the importance of investor protection and support for public interest in their case to the SEC.

Additionally, the two argue that without US SEC approval, Bitcoin investors face higher risks of theft, loss, and destruction of keys.  SolidX and VanEck, by contrast, have assembled a $125 million insurance capacity from underwriters.  Therefore, they made arrangements to further scale the fund’s insurance capacity, notes Unhashed.

An ETF Provides a Solution to Investor Issues

“An ETF provides a straightforward solution for investors seeking price exposure without facing counterparty risk, as the ETF would be cleared through DTCC,” read the memorandum. “Furthermore, in creations and redemptions, the Trust always requires APs and trading counterparties to settle their leg of the trade before the Trust will do so.”

The US memorandum ends with a restatement of resolved prior issues.

For example, “There now exists a significant regulated derivatives market for bitcoin.”

Currently, there are regulations governing relevant markets such as CBOE.  Concerns around price manipulation have been mitigated, consistent with approval of prior commodity-based ETPs.

And, “To the extent necessary, we stand ready to make additional changes to the product structure consistent with Section 6(b )(5) of the Exchange Act to address any concerns of Commission or Staff,” said the applicants.

Since the last US SEC meeting, the group called for public comments by October 17, 2018.  Consequently, any members of the public that wish to review any arguments can file by October 31, 2018.

The likelihood of a Bitcoin ETF just got stronger

All thanks to President Trump’s latest appointment of Republican Elad Roisman to the US SEC.  In fact, he may be the missing a vital piece that could tilt the balance in favor of approval.

With a strong stance on fair regulation of cryptocurrency, Roisman noted, “The SEC must examine and re-examine its rules, regulations, and guidelines to ensure that they are still working as intended to accomplish the SEC’s mission. This is most recently manifested in areas such as data protection and cybersecurity as well as the emergence of new investments and technologies such as initial coin offerings and blockchain.”

Hopefully, we’ll see Bitcoin ETF approval sooner rather than later.

 

 

 

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