The SEC called for ”any party or other person” to file a written statement either supporting or condemning the ETFs in the allotted time before the deadline.
As Bitcoin News reported last month, 1,400 written submissions were filled in the case of the VanEck SolidX Bitcoin ETF, with a notable majority in favor of launching the trading fund, although it would seem this was not largely taken into consideration by the SEC as it delayed making any decision on the case. The director of VanEck, Gabor Gurbacs, clearly thought the decision should have gone another way, saying, ” The public has spoken! Bitcoin is compatible with the US and global capital markets.”
The regulatory body said that as they stood, each proposal failed to comply with the Exchange Act Section 6(b)(5) that requires ”a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices”.
It noted that without any central body regulating the cryptocurrency space, the market is particularly susceptible to pump and dump schemes, being unable to adequately protect traders.
NY Times financial reporters Nathaniel Popper (@NathanielPopper) and Peter Lattman (@PeterLattman) broke the news that the Cameron and Tyler Winkelvoss have filed with the SEC a proposal to create a Bitcoin exchange-traded fund. Excerpts:
“The plan involves an exchange-traded fund, which usually tracks a basket of stocks or a commodity, but in this case would hold only bitcoins.” – “The Winklevoss Bitcoin Trust could send digital money from the realm of computer programmers, Internet entrepreneurs and a small circle of professional investors like themselves into the hands of retail investors — virtually anyone with a brokerage account.” – “‘The trust brings bitcoin to Main Street and mainstream investors to bitcoin,’ said Tyler Winklevoss, co-founder of Math-Based Asset Services, which would operate the proposed fund.” – “Their proposal has the advantage of coming from the desk of Kathleen Moriarty [who had] a leading role in the creation of the first exchange-traded fund and popular gold- and silver-backed E.T.F.’s.” – “The Winklevosses [previously] went public with their own bitcoin hoard, amounting to about 1 percent of all outstanding coins, or about $10 million.” – “An exchange-traded fund would make it significantly easier to gain exposure to bitcoins, just as commodities-based funds have made investing in gold, silver and other precious metals more accessible.” – “The Winklevoss fund would buy one bitcoin for every five shares, making the value of a single share worth about a fifth of a single bitcoin.” – “‘Digital currencies are not going away,’ said Carol Van Cleef, the head of law firm Patton Boggs’s emerging-payments practice.”