The regulator is awaiting comments on Cboe’s offer to list and trade SolidX Bitcoin Shares, which in turn was proposed by VanEck SolidX Bitcoin Trust, according to a document released on Tuesday.
The ETF will invest exclusively in bitcoin, the document says, as its net assets will “consist of bitcoins held by the trust.”.
According to Cboe’s filing, ETF securities will become a tool for players to invest in bitcoin in traditional markets. While the operators will buy and sell bitcoins according to the needs of the clients, the trust itself will not be actively managed..
The SEC is awaiting comments on the rule change required to launch this tool from the “stakeholders”.
The ETF presented is the result of a collaboration between investment firm VanEck and blockchain startup SolidX. It marks VanEck’s third attempt to launch a Bitcoin investment vehicle.
VanEck CEO Jan van Eck sees bitcoin as “a full-fledged investment opportunity and a ‘digital gold’ that can find a place in investor portfolios” despite the regulatory hurdles his company has faced in the past..
“We believe that together we can create something that will exceed other proposals awaiting regulatory approval. A properly organized ETF physically backed by Bitcoin will provide access to the price of Bitcoin, and an element of insurance will protect participants from operational acquisition risks and storing bitcoin“, – he said.
Although several companies previously tried to launch their own Bitcoin ETFs, the SEC forced them to withdraw their applications. Then the regulator stated that, among other things, it is concerned about the problems of volatility and liquidity of cryptocurrencies..
- Robinhood and LibertyX Receive Cryptocurrency License From New York Regulator.