Two New York firms that in the past have tried unsuccessfully to get permission from the US Securities and Exchange Commission to open over-the-counter investment bitcoins, decided to join forces by filing a joint application for the launch of a regulated cryptocurrency ETF, according to Wall Street Journal.
The relevant application was filed with the SEC on Wednesday, June 6. The new ETF was named VanEck SolidX Bitcoin Trust and will be immune from theft and loss of access to funds. It will also be tied to a new index from Van Eck, which instead of exchanges will collect the price of bitcoin from US-based over-the-counter (OTC) platforms.
Noteworthy is the relatively high price of VanEck SolidX Bitcoin Trust shares – their size, as stated in the application, is set at $ 200,000. Thus, it can be concluded that the new ETF will primarily target institutional investors, not retail investors.
This was confirmed by SolidX executive director Dan Gallansi, who recalled that representatives of the SEC repeatedly expressed concern that the cryptocurrency market poses increased risks for retail investors.
Asset management company VanEck Associates Corp and SolidX Management LLC have already applied for Bitcoin-ETF, but they did it separately.
The application VanEck was filed in August 2017, but already in September it was withdrawn – the reason was the decision of the SEC not to consider applications for the creation of bitcoin-ETF before the actual appearance of cryptocurrency derivatives in the market into which such funds intend to invest.
The application for the launch of ETF on the basis of bitcoin was filed by SolidX Partners Inc in July 2016. It was assumed that the fund will be traded on the New York Stock Exchange (NYSE). After several postponements of the application in March 2017, the SEC finally rejected it.
In January, the Commission called for the withdrawal of all applications for the creation of bitcoin-ETF. As then stated in the department, the activities of stock exchange investment bitcoin-funds at the moment will not meet the requirements of the regulator.
Nevertheless, despite the fact that direct discussions with the regulator VanEck and SolidX have not yet been conducted, the representatives of the firms believe that the structure of the new product takes into account the main aspects for which the SEC is concerned, including the lack of transparency of online exchanges, many of which are outside the United States.
“We did not intend to surrender, ” added Dan Gallanty.