Senior Analyst Explains VanEck ETF Eventual Acceptance by SEC
Exchange-traded funds will see a promising right as the US Securities and Exchange Commission considers approving the VanEck SolidX BTC Trust and the CBOE. Despite high expectations of acceptance, the SEC has previously denied another ETF proposal by Bitcoin billionaires, the Winklevoss brothers.
The SEC has no faith in the Winklevoss proposal, believing that the proposal itself will lack the necessary resources to protect itself from manipulative pricing and that VanEck’s proposed ETF has provided evidence and instilled confidence in its potential. This comes according to Mati Greenspan, an SA from eToro.
As he explains, the proposal by VanEck is designed specially to accommodate institutional investors and provide the required needs by them. The futures contract itself will begin at 25 Bitcoins, reportedly worth around $200K given its current price. Companies that provide hedge funding while managing massive amounts of funds and looking to update and expand their portfolios into BTC are not looking for technical issues related to private user passwords and storing cryptocurrencies online.
Greenspan continues explaining that a necessary confirmation and validation of the receiving end of a contract and a properly monitored and regulated exchange through the contact is what everyone is striving towards and is absolutely necessary. Additionally, the Bitcoin ETF by VanEck provides complete insurance and inspires confidence and trust when operating with ETFs.
Towards the end of June, VanEck collaborated with SolidX to design and create an application for a BTC exchange-traded fund together as a means of comforting the US financial watchdog and provide clarity and confidence in the foreseeable performance of such a proposal once it's been approved.
To note, this is not the first time VanEck has submitted a proposal but has been denied approval a few times before. CBOE has also seen the same rejection after their proposal for BTC ETFs. Both companies are refusing to accept any denied proposal again and adamant about providing all the qualifications and assurance of their proposal to the SEC.