VanEck has written to the United States Securities and Exchange Commission (SEC) in new efforts to convince the regulator to approve Bitcoin exchange-traded funds (ETF). At this point, the Commission has remained unwilling to approve any cryptocurrency ETF filings, citing reasons relating to liquidity, volatility, and pricing among other issues in the crypto market.
Bitcoin ETF Will Combat Price Manipulation
According to VanEck, BTC ETFs will help to combat price manipulation in the market. Earlier in the year, the Department of Justice (DoJ) in collaboration with the Commodity Futures Trading Commission (CFTC) began investigating suspected price manipulation activities in the Bitcoin market. In the letter, VanEck argues that:
“Given the proposed ETF’s regulation under the Securities Act of 1933 and 1940 Act and the fact that it offers exposure via regulated and surveilled bitcoin futures, we reasonably expect the proposed ETF to reduce potential manipulation and operational risk associated with a bitcoin investment product.”
Apart from price manipulation, the investment management company also provided robust responses to other SEC concerns that have stood against the Commission’s approval of any BTC ETF filing.
VanEck recently submitted another Bitcoin ETF filing with the SEC after having its previous filing denied by the Commission. This time around, VanEck is partnering with SolidX.
SEC Delays Direxion Bitcoin ETF Decision
In a related development, the SEC has postponed its decision on the Direxion Bitcoin ETF filing until September 21, 2018. The delay was occasioned by the need for the Commission to take additional time before arriving at an outcome for the BTC ETF filing.
Direxion Investment LLC filed for its catalog of Bitcoin ETFs in early January 2018 with Arca Inc., looking to list and trade shares of the ETF. By January 24, 2018, the SEC had published the filing, and a decision was expected on or before July 23, 2018. However, the Commission decided to take an additional 60 days to carefully examine the matter with the final decision date set for September 21, 2018.
Announcing the delay, the SEC said:
“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change.”
With the recent resurgence in the price of Bitcoin, crypto enthusiasts will be hoping for a positive SEC decision concerning BTC ETFs. Many analysts have predicted that the price of the top-ranked cryptocurrency will skyrocket if BTC ETFs become a reality.
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