Bitcoin ETF fate is finally going to be decided on August 10. Currently, SEC is asking for comments on the listing and trading of Bitcoin ETF introduced by VanEck SolidX Bitcoin Trust that will be catering to only accredited investors.
The proposed date by SEC to give its decision is August 10 that by extension will also decide the fate of cryptocurrencies and if trillion dollar funds will finally pour in the crypto market.
Bitcoin ETF by VanEck & SolidX: SEC seeking comments
A few days back, the US Securities and Exchange Commission (SEC) opened the CBOE ETF filing for public comments which is most likely to be concluded on August 10.
The official website of SEC states, “Comments on Cboe BZX Rulemaking” in regards with the “Notice of Filing of Proposed Rule Change to List and Trade Shares of SolidX Bitcoin Shares Issued by the VanEck SolidX Bitcoin Trust”.
This proposal calls for the listing and trading of SolidX bitcoin-based exchange-traded fund (ETF) which states that it will only invest in bitcoin. SolidX and VanEck came together for this in early June. It was not even their first attempt, but the third one to build a bitcoin investment project.
According to CEO Jan van Eck,
“We believe that collectively, we will build something that may be better than other constructs currently making their way through the regulatory process. A properly constructed, physically-backed bitcoin ETF will be designed to provide exposure to the price of bitcoin, and an insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin.”
Moreover, one share will be roughly equivalent to about 25 bitcoin which means it is created for the accredited investors.
Trillion dollar funds awaiting on the curb
Now, the SEC is asking for comments from the interested people. In the past, several companies have tried to list Bitcoin ETFs but to no avail. The concerns regarding the high volatility of the market along with the liquidity have been the primary reasons for authorities’ reluctance to allow them.
It has been revealed by the sources that August 10 is the proposed date when the SEC will make their decision on the future of these Bitcoin ETF and by extension the entire cryptocurrency market.
For the starters, the application of Bitcoin ETF by a Wall Street firm in itself is a huge step that is giving a clear indication of a huge amount of money pouring into the crypto market. Also, being only for accredited investors, their entry would also mean the entry of big money. It would also enhance the price discovery characteristics of which help in recognizing accurate trading signals.
If SEC does give its nod of approval for the ETFs, it would mean an indirect green light to mainstream investment in altcoins as well. This would eventually bring funds in trillions in the crypto market.
Though there is no surety of the incidents in the crypto market, if this proposed date does see a green light, big fat investors would be jumping into the market through these additional assets.