The company VanEck, SolidX BZX Exchange Cboe and again presented to the controller arguments in favor of market readiness to launch a bitcoin exchange traded Fund (ETF). Meeting with the staff of the American Commission on securities and exchange Commission (SEC) of the units corporate Finance, trade and markets, Department of economic analysis and market analysis, and management of the General counsel was held this week.
The event was different from previous meetings, when the discussions particular attention was paid to regulation. In their submissions, proponents run the Fund relied on the opinion that the bitcoin market is Mature enough to support ETFs, and currently looks the same as the markets of other assets with similar products. An example of such assets and markets crude oil, silver and gold.
Representatives of the companies-partners pointed to the interdependence of futures and spot markets, noting that “money substitutes” such as gold and silver, this link can be proven empirically, and, in addition, it is a “proof of well-functioning capital market”. The same situation is on the bitcoin market, where, “as in the case of commodity futures, spot and futures prices of bitcoin are closely linked” — which also speaks of a “well-functioning capital market”.
Moreover, according to the speakers, the bitcoin ecosystem is “less susceptible to manipulation” than other products that already have exchange-traded investment products. So, insiders may have or to trade information related to the delivery of physical goods, if discovered a new field or there are factors responsible for the decline in production, which in turn will affect the price.
Bitcoin is not faced with similar problems, said representatives of the companies pending before the SEC:
“The relationship between bitcoin markets and the presence of arbitrageurs in these markets means that the manipulation of the bitcoin price on any site for the purpose of efficiency will require manipulation of the global price of bitcoin… Therefore, bitcoin is susceptible to manipulation no more than other products, especially when compared to these other assets, received approval for ETFs”.
In the end, any attempt of manipulation of the price of bitcoin “will require overcoming the proposals of the liquidity of arbitrageurs effectively eliminate any price differences between the markets”, especially given that these arbitrageurs is likely to have on different stock exchanges its means to benefit from the price difference.
In addition to the features of the market, representatives of three companies told about technological solutions and OTC bitcoin Cboe index MVIS created VanEck, how about the technology that in future will bear fruit.
In particular, some of the benchmarks pricing MVIS designed specifically for ETFs. Subsidiary VanEck operating in accordance with the regulations of the EU, to date, offers 88 indexes for different classes of assets, cost of assets under passive management of the company — about $15 billion.
It is noteworthy that the meeting with regulators took place the day before, the Chairman of the SEC, Jay Clayton (Jay Clayton) expressed concern about the problem of manipulation in the market, noting that it is one of the main barriers to ETF approval.
