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With well over 1,400 comments from investors, the SEC announced that they would need more time to review the much-anticipated ETF proposal from VanEck Securities and SolidX Management. It has appealed to the investor community for more feedback.
Approval would mean a landmark moment for the crypto industry
In a release dated September 20, the SEC has “instituted proceedings to determine whether to approve or disapprove a proposed rule change to list and trade shares of SolidX bitcoin shares.” The Bitcoin ETF (exchange-traded fund) was pitched in June this year by investment firm VanEck and financial services company SolidX Management. VanEck had proposed to market the ETF while SolidX was to act as sponsor. If the SEC approves the ETF, it will mark a significant moment in the crypto revolution.
The SEC has concerns
The agency is interested in understanding why the Cboe Exchange says, Bitcoin is “arguably less susceptible to manipulation than other commodities.” As such, it will take at least two more months to review feedback on the rationale supporting the Cboe’s claims in support of the ETF.
Not the first ETF proposal
There have been nine previous proposals by various companies to launch Bitcoin ETFs. Both VanEck and SolidX have previously individually attempted to list Bitcoin ETFs on multiple exchanges and later, had to withdraw their proposals at the request of the SEC.
Bitcoin ETF proposals were initially rejected entirely by the SEC. However, it reversed its decision and decided to delay the proposals so that they could be studied comprehensively by a full commission set up for this purpose. This is a positive move by the SEC, regarded as a watering down of an earlier strict stance regarding cryptocurrencies and digital assets.