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Increasing Likelihood of ETF Approval from SEC in Early August

Jul 13, 2018, 7:39AM
1 min, 25 sec READ

CBOE's proposition to list or trade shares of the VanEck SolidX Trust has placed the SEC on a deadline with increasing pressures for approval.

A filing from earlier this week by the Chicago Board Options Exchange (CBOE) has rejuvenated optimism surrounding possible crypto-inspired exchange-traded funds (ETF). CBOE submitted an application to the Securities and Exchange Commission (SEC) in late June, proposing a rule change which would allow CBOE to "list and trade shares of SolidX Bitcoin Shares issued by VanEck SolidX Bitcoin Trust." The June 26 proposal cites a deadline for a response from the SEC,

Within 45 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date / SEC, Release No. 34-85320

In layman's terms, the reviewing committee is required to issue a response by August 10 with a possible extension to September 24/. The most notable comparison came in March of last year from the Winklevoss Bitcoin Trust ETF. Despite the expected denial, Bitcoin's price responded favorably. Expectations are even higher for the newest filing. The VanEck Solid X ETF would require extreme capital from potential investors, eliminating the presence of retail players in the emerging market. 

Many comments on the SEC's discussion board for the "Cboe BZX Rulemaking" project are favorable towards an expanding market that can no longer remain unregulated. Bitcoin's market cap continues to hover above $100 billion despite a shaky first half of 2018. Regardless of how federal agencies classify digital assets and cryptocurrencies, someone will need to hold jurisdiction. Moving forward with the approval of an ETF will supply interested investors with a secure way to trade Bitcoin in a capacity not entirely tied to futures contracts.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.