The Chicago Board Options Exchange’s (CBOE), along with other financial companies VanEck and SolidX, has resubmitted the Bitcoin ETF proposal for approval with the United States Securities and Exchange Commission (SEC). VanEck digital asset policy director Gabor Gurbacs declared the public filing on Jan. 31.
The Proposal was withdrawn
The proposal was withdrawn from consideration in the month of January due to the U.S. government shutdown. At the time, VanEck CEO Jan van Eck described that the organizations registering the custom modification recommendation had been in discussions with the SEC, but those talks finished when the shutdown started. To bypass a presumable dismissal due to the cessation, the proposal was withdrawn.
On June 20, 2018, Cboe BZX Exchange (BZX) had filed with the Securities and Exchange Commission, following the Section 19(b)(1) of the Securities Exchange Act of 1934 a suggested rule modification to pitch and trade shares of SolidX Bitcoin Shares distributed by the VanEck SolidX Bitcoin Trust under BZX rule Commodity-Based Trust Shares.
Just like the earlier proposal, the new report hints a rule modification to a plan described in Section 19(b)(1) of the Securities Exchange Act of 1934 that would support the SolidX bitcoin shares to be registered and exchanged on a US exchange. The shares would be distributed by the VanEck SolidX Bitcoin Trust, which would be accountable for holding the bitcoin that supports announced shares.
According to the plan, each Share will describe a partial detailed profitable interest in the Trust’s exclusive assets. The proposal also asserts that because each share will require the same as 25 bitcoin, the organization assumes that only “institutional and other substantial investors” will be capable to manage to invest in the ETF.
[T]he Shares will be cost-prohibitive for smaller retail investors while allowing larger and generally more sophisticated institutional investors to gain exposure to the price of bitcoin through a regulated product while eliminating the complications and reducing the risk associated with buying and holding bitcoin.
CBOE Assistant General Counsel Kyle Murray registered rule modification proposal SR-2019-004 on January 30th.
The Exchange proposes a rule change to list and trade shares of SolidX Bitcoin Shares issued by the VanEck SolidX Bitcoin Trust, under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares.
According to Gabor Gurbacs, CEO of VanEck, the enthusiasts did a hard work examining and analyzing the proposal. Gabor tweeted:
The story of the SolidX ETF has been flattening since June 2018 when the organizations first listed their proposal. The SEC judgment on that proposal was postponed until September before being lingered again, with the SEC affirming a judgment would be delivered by February 27, 2019. In an unexpected twist of circumstances, the organizations reversed their primary proposal just last week.
CBOE Or NYSE?
Cboe’s appeal for a Bitcoin ETF arises just days after the NYSE declaration to start an ETF with Bitwise’s assistance. Until now no additional specifications are acknowledged about the constitutional status of this application.
Currently, the Cboe and NYSE would be the two principal contenders in the competition to start what would be the initial Bitcoin ETF in the USA. However, both have not yet announced the application in the Federal Register, indicating that the SEC has not yet been announced nor can it start the particular evaluation method.
After the application is filed in the Federal Register, the SEC by rule has 240 days to choose whether to accept it or decline it. The trading association is studying it, essentially because of the possible decisive influence, a Bitcoin ETF would have on drawing institutional investors.
Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The crypto market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.
Instant Crypto Credit Lines™ from only 5.9% APR. Earn up to 8% interest per year on your Stablecoins, USD, EUR & GBP. $100 million custodial insurance.
This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission - but the prices do not change for you! :)
Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
You might also like
More from Crypto
Gelato Network announced that it is bringing easy automated bots and thus process automation to the Ethereum blockchain aided by …
The xToken team announced on Jul 03 that it is partnering with Kyber Protocol, to introduce xKNC - a single …