Recently, the United States Securities and Exchange Committee (SEC) opened a “Notice of Filing of Proposed Rule Change to List and Trade Shares of SolidX Bitcoin Shares Issued by the VenEck SolidX Bitcoin Trust” for public comments. This proposal, which if approved, would finally allow the world’s leading cryptocurrency to be traded on public stock exchanges it set to face a ruling on August 10th.
The Cboe BTC ETF would allow investors to purchase shares in SolidX with each share being equivalent to 25 Bitcoin. Despite Bitcoin futures being introduced by Cboe and CME last year, the SEC still has yet to offer any approval for Bitcoin ETFs. This is the first proposal for Bitcoin ETFs since SEC Director William Hinman weighed in on whether or not cryptocurrencies are securities last month.
“We believe that collectively, we will build something that may be better than other constructs currently making their way through the regulatory process,” Says CEO Jan van Eck, who proposed the bill in partnership with SolidX, “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.”
The entire crypto world will undoubtedly be watching this story closely as it develops, as Bitcoin ETFs would likely send millions if not billions of dollars pouring into the cryptocurrency market. Furthermore, Bitcoin ETFs would likely open the door for other alt-coins to become approved for ETFs in the future.