A month has passed since a Bitcoin ETF application arrived back at the US. SEC office. CBOE, VanEck and SolidX had previously faced individual rejection of the application. But now they have decided to make the request as co-applicants. So many people are watching this event closely. The community hopes that this time the SEC’s position could change.
CBOE, VanEck and SolidX Co-Applicants
The SEC had rejected the bitcoin ETF three times before, but this time things look good to move forward. The application filed by CBOE, VanEck and SolidX has been prepared taking into account all the above reasons why the SEC rejected them.
- Protection of Small Investors: the size of the investment ticket is high to keep the product out of the reach of small investors. Each share, according to the proposal, would be 25 bitcoins, which would make it too expensive for a retail investor.
- Custody Services: Previously there were none. Dalia Blass had mentioned this in the reply letter that she had rejected the formation of ETFs in January 2018. Fortunately, cryptocurrency custody services are now available with Coinbase and the Swiss Stock Exchange.
- Hacking Theft: All bitcoins held by the Trust will be stored using multi-signature cold storage wallets.
- Insurance Coverage: Complete coverage underwritten by several insurance companies will be available. The insurance policy will have an initial limit of $25 million in primary coverage and $100 million in excess coverage, with the ability to increase coverage depending on the value of the bitcoins held by the Trust.
- Liquidity: Now with the launch of Bitcoin futures, a decent volume is generated in both CBOE and CME. Even in spot markets through crypto exchanges, the volume seems to be growing.
With the price corrections, speculators seem to have to be at rest for now, leaving room for real investors and interested parties.