A recent letter from VanEck to the SEC addressed some issues, including the use of futures and market liquidity. Bitcoin futures debuted on the Chicago Board Options Exchange (CBOE) in December with CME Group following suit just a few days later.
Investors Patiently Wait for Bitcoin ETF Decision
“Despite the anticipation, some pundits believe a decision in favor of an ETF won’t come until 2019. Brian Kelly, founder and CEO of BKCM LLC, an investment firm focused on digital assets, told MarketWatch in July that a decision in 2018 is unlikely,” according to MarketWatch.
“Given the proposed ETF’s regulation under the Securities Act of 1933 and 1940 Act and the fact that it offers exposure via regulated and surveilled bitcoin futures, we reasonably expect the proposed ETF to reduce potential manipulation and operational risk associated with a bitcoin investment product,” said VanEck in the letter.
The issuer also believes its effort to launch a bitcoin ETF via an investment structure that is already regulated (ETFs) is consistent with the SEC’s objective of protecting investors.
Last month, the SEC rejected plans by Winklevoss Capital Management founders Cameron and Tyler Winklevoss to launch the Winklevoss Bitcoin Trust, but some market observers believe the regulator will eventually approve exchange traded funds linked to bitcoin.
For more information on the cryptocurrency market, visit our Bitcoin category.