The Commission on securities and stock exchanges (SEC) the US seems again to defer action on bitcoin exchange-traded Fund (ETF) Cboe. This is the second postponement of the filing of a registration statement, Fund companies VanEck and SolidX, and though the SEC has not yet announced the rescheduling of officially, however, her statement last week made it clear that the decision in late September can be shifted by the end of the year. According to the lawyer Kobre & Kim cherwinski Jake (Jake Chervinsky), likely the deadline will now be December 29.
The fact that, under the law governing the Commission’s consideration of the issue of registration can take up to 180 days from the date of publication of the announcement in the Federal register. Cboe statement was published on 2 July.
Head of strategy for digital assets VanEck Gabor Garbacz (Gabor Gurbacs) said that the delay was to be expected. However, he emphasized the commitment of the company to bring to market “liquidity, insured and properly regulated physical bitcoin ETF”.
SolidX CEO shares his view and argues that the recent decision of the SEC had no impact on the plans of the startup. Industry experts, in particular Eric Balchunas (Eric Balchunas), chief ETF analyst at Bloomberg Intelligence also believe that the chances of getting approval before the end of the year not increased to wait for their increase is not worth it. In August, the expert estimated the probability of a positive for VanEck and SolidX outcome until the end of the year is 5-10%.
Indeed, the chances of approving the Cboe is still small, but still higher than the other nine bitcoin ETF application for registration which was rejected by the Commission in August, despite the fact that the SEC has agreed to reconsider its decision. Bitcoin ETF from VanEck, and SolidX has one, but important difference: it will only Fund secured by physical assets in BTC, not derivatives on bitcoin. VanEck and SolidX will release the shares of Cboe with an initial nominal value of $200 000 since the company hopes to weed out the young and inexperienced private investors.
Recall that in August, Balchunas called the project Cboe “first steps to real ETF”. The main competitive advantage of any bitcoin ETF, according to analysts, is the ability to easily buy them using bitcoin without the need to create an account on crypto exchange or crypto. He believes that this ETF will be able to get customers from major us exchanges.
However, according to the attorney Czerwinski in his Twitter, some difficult issues raised by the SEC in a recent statement on the Cboe, only confirm the concerns of the Commission about the nature of the cryptocurrency market and its susceptibility to high level manipulations. CEO VanEck Gurbax notes that these issues are not new, but he was confident that the answers are in the application for registration of the Cboe.
“The Commission just needs time to learn about this market… We responded in its application to almost every question that was asked, especially paying attention to the 18 of them relating to liquidity, pricing and market manipulation,” added Arbex.