Business 21 February 2019Dan Taylor
US securities regulator starts reviewing 2 new crypto ETF proposals
The U.S. Securities and Exchange Commission (SEC) is now considering two proposals for exchange traded funds (ETFs), after a second application was filed this week.
An ETF proposal from VanEck/SolidX, filed with Cboe BZX Exchange, was published in Wednesday’s Federal Register, marking the first time since August 2018 that more than one ETF proposal is under review.
With the filing in place, there are now 45 days to go until an initial ruling, with optimism around at least one of the funds being given the green light by regulators.
ETFs are considered to be an important step in attracting more institutional investors into the cryptocurrency space. But to date, regulators have been reluctant to grant approval, citing concerns over the transparency and integrity of Bitcoin Core (BTC) markets, amongst several key reasons for rejecting these plans.
The latest proposals come just a matter of days after an application was submitted by Bitwise Asset Management with NYSE Arca, meaning two potentially significant rulings are expected in short order within the 45-day approval window.
After the U.S. government shutdown was blamed for the withdrawal of previous proposals from VanEck/SolidX, the recent filing is considered by some analysts to be a strong candidate for approval.
If regulators decide the ETF should be approved, it would become the first crypto ETF to be allowed to list on U.S. exchanges. VanEck’s Gabor Gurbacs told CoinDesk the firm had been working closely with regulators to develop the ETF, with hopes this would pay off by winning approval from the SEC.
He noted, “I … hope that our investment in regulatory and market education, hard work and commitment will be honored when the time comes.”
Meanwhile, Bitwise Head of Research Matt Hougan told the news outlet that the pace of change in the crypto sector meant it was possible an ETF would be approved sooner rather than later. He explained, “A year ago there was maybe one qualified crypto custodian … and now there are half-a-dozen, and that number will go up from here. A little more than year ago, we didn’t have futures. A year ago we didn’t have nearly as many firms making markets. A few months ago, you didn’t have folks like Fidelity announced in the space. It’s evolving really, really quickly.”
SEC’s initial rulings on both ETFs are expected by early April.
Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.
Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.
Business 23 minutes ago
Crypto coming? Facebook pulls payment option from Messenger
Customers in UK and France are no longer able to conduct mobile payments via Messenger, a possible precursor to the launch of the Facebook Coin.
Business 29 minutes ago
Lack of standard terms hindering crypto adoption, study finds
Clear definition of different terms is one factor that will enable regulators to create policies in crypto space, according to Cambridge Centre for Alternative Finance.
Business 1 hour ago
Anonymity is not a Bitcoin-related term
When Bitcoin was first conceptualized, it had a very clear and transparent framework but that clarity was clouded by people who thought they knew better.