News picture Tuesday 24th of July was filled with several events related to the possible launch of bitcoin-focused exchange-traded funds (ETF) and the reaction to their appearance on the part of the Commission on securities and exchange Commission (SEC).
The greatest attention was attracted by the news that new York-based investment Fund VanEck Associates launched a new attempt to convey to the controller its position on the bitcoin ETF and the potential to push it to permit the launch of such a financial instrument.
As written by Bitcoinist, 20 Jul VanEck sent the SEC a letter in which he again expressed his belief that the industry is ready to support ETF.
As known, the SEC rejected all requests to launch a bitcoin ETF. In addition, in January the Commission informed the representatives VanEck, however, a need to give “satisfactory” answers to several questions before it considers possible “to initiate registration of the funds intends to invest primarily in crypto currencies and related products”.
Apparently, VanEck believes that the company has the most “satisfactory” answers.
“In your letter you expressed a number of doubts about cryptocurrency and cryptocurrency-related investment funds about determining their value, liquidity, storage, arbitrage, potential manipulation and other risks. We believe that we have competent answers to these questions. Moreover, we believe that by offering investors access to bitcoin through a regulated investment product proposed ETF will match the task of the SEC to protect investors, maintain fair, orderly and efficient markets and formation of capital,” the letter says VanEck.
VanEck has swung back at the SEC defending its ETF in a July 20 letter to the agency, showing the liquidity and diversity of bitcoin markets: pic.twitter.com/0KdOuGDtnl
— Frank Chaparro (@fintechfrank) 24 July 2018
VanEck also examines in detail each of the designated Commission risks and explains why it considers them an obstacle to launch a bitcoin ETF.
“Taking into account that the proposed ETF will be regulated in accordance with the securities laws from 1933 and 1940, and the fact that he will work through regulated bitcoin futures, we have every reason to expect that the proposed ETF will reduce opportunities for manipulation, and operating risks associated with the investment bitcoin products”, — concluded the company.
We will remind, in June VanEck and SolidX filed a joint application for the opening VanEck SolidX Bitcoin Trust – bitcoin ETF-which will be insured against theft and loss of access to funds. The offered product is bound to the new index from Van Eck, which is exchanges will collect the price of bitcoin with the US-based over-the-counter platforms.
Simultaneously it became known that the SEC received another application for registration of the ETF, while based directly on the ten most liquid cryptocurrency.
The application has been sent on behalf of the company asset management Asset Management Bitwise,and as they say in the press release, the proposed ETF will track the movement of the index HOLD 10. Access ETF will have both institutional and retail investors.
Another exciting milestone for Bitwise: Today, we filed a registration statement with the Securities and Exchange Commission for the first cryptocurrency index ETF. https://t.co/9lsuEAiVek
— Bitwise (@BitwiseInvest) 24 July 2018
At the moment the index HOLD 10 includes bitcoin, Ethereum, XRP, Bitcoin, Cash, Stellar, Litecoin, Dash, zcash for, Monero and Ethereum Classic, says co-founder and CEO of Bitwise hunter HORSLEY, it is a valuable tool for investors precisely because it is not limited to one specific cryptocurrency.
“No one knows what will happen in five or ten years. Index HOLD 10 offers more coverage, updated monthly and adapts to the market,” said hunter HORSLEY.
Finally, today the SEC was postponed to September 21 making decisions in respect of the five bitcoin ETF application to run are filed by Direxion. In applications it describes the tools directly tied to the exchange rate of bitcoin and other cryptocurrencies.
In the latest edition of the U.S. government’s Federal Register, the Commission explained that delays the decision on the applications by the company Direxion Investments, also noting that he had received them only two comments.
We will remind, earlier in July an application for the opening of another bitcoin exchange-traded Fund (ETF), which intends to trade stocks SolidX, the SEC has sent Chicago Board options exchange (CBOE Global Markets). Her review is expected on August 10.