VanEck-SolidX Bitcoin ETF Refiled with SEC

In a recent interview with CNBC, VanEck CEO Jan van Eck said that the application would be submitted in time for the SEC to act upon it. According to a tweet published one week later by VanEck’s Digital Asset Strategist Gabor Gurbacs, the ETF proposal is back with the SEC.

The VanEck SolidX Bitcoin ETF proposed rule-change has been submitted by CBOE. Hard work by all teams involved. Public document: https://t.co/X25lOPjiFS pic.twitter.com/C9FP4adDE8

— Gabor Gurbacs (@gaborgurbacs) January 31, 2019

Calling Out The SEC

The included document reveals that VanEck has made a few changes to its filing since its previous attempt. A section that delves into the SEC’s past ETF applications is most remarkable, as it points out that the commission has, in the past, approved certain exchange-traded products without its requirement of a significantly-regulated market. Citing the Breakwave Dry Bulk Shipping Futures ETF of 2018, VanEck reasoned that the approval order did not discuss steps taken by the company to share surveillance data related to fright trades, nor did it acknowledge means to prevent fraud and manipulation in the space. Continuing on the subject of the Breakwave ETF, VanEck emphasized that the national daily volume of freight futures at the time was estimated at a mere $50-100 million per day. Bitcoin (BTC), meanwhile, saw $150 million and $121 million worth of volume in the third and fourth quarter of 2018. The SEC rejected a slew of Bitcoin ETF applications last year — a citing lack of volatility as a key reason.

Other ETF Applications

Besides Cboe and VanEck, the Winklevoss Twins are also actively working on getting a Bitcoin ETF approved through their cryptocurrency exchange Gemini. In July 2018, the SEC rejected the proposal, citing a lack of local trading volume and manipulation concerns. A month later, the commission threw out nine other applications for similar reasons. SEC Commissioner Hester Peirce infamously opposed the rejections, however, and gained the respect of the cryptocurrency community after publishing a detailed dissent on the commission’s website. Shortly after the Gemini ETF rejection.

Apparently, bitcoin is not ripe enough, respectable enough, or regulated enough to be worthy of our markets. I dissent: https://t.co/gH5zXaKtmj

— Hester Peirce (@HesterPeirce) July 26, 2018

What do you think about the new VanEck-SolidX Bitcoin ETF filing? Let us know your thoughts in the comments below!