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Crypto ETF Hopefuls Rendezvous with SEC
As reported by Ethereum World News in late October, a series of representatives from VanEck, SolidX Partners and CBOE, the three companies behind the major Bitcoin ETF application, met the US Securities and Exchange Commission in a closed-door meeting.
A post-mortem document revealed that the meeting focused on the ETF, which occurred on 9 October, saw the participation of Commissioner Roisman, who was classified as "pro-crypto" by some, four legal advisors and five representatives of the three aforementioned financing focused companies. For the release of a tandem VanEck slide deck with post-mortem, the consortium allegedly claimed that the proposed Bitcoin ETF complied with the original SEC regulations and guidelines outlined in Winklevoss's refusal of ETF.
No SEC commentary was issued during the October meeting, but many investors hoped at the time that forum participants were satisfied with what was presented.
With the publication of an official SEC memorandum, dated 28 November 2018, it seems that a similar event has just occurred, just six weeks after the aforementioned.
At this recent meeting, representatives of VanEck have advertised a 62-segment slide deck, which has interrupted the application of the ETF to its core, along with the current state of the cryptocurrency market in general. Discussing on this last point, the deck noted that, like traditional commodity markets, the value of BTC is "closely linked" to spot and forward markets, apparently proving that Bitcoin is a "market" of well-functioning capital ".
VanEck and SolidX also drew attention to the "Breakwave Dry Bulk Shipping" ETF, arguing that the approval of this traditional market product indicates that the Bitcoin markets are, in fact, able to facilitate a product traded on the stock exchange.
Financial companies continued to draw attention to the "resilience of bitcoin markets", arguing that the fixed, distributed and secure supply of the cryptocurrency ecosystem would not allow manipulation.
The three points mentioned above, of course, respond to SEC's concerns that the Bitcoin industry is not "of significant size" and is likely to be manipulated by bad actors.
VanEck continued to praise the CBOE system, on which the ETF would be based, for its speed, security and ability to remain compliant with the finance bill, something the SEC probably calls for.
Last but not least, Bitcoin's hopes of interrupting its proposed product focused on the institution, which will apparently be quoted at $ 250,000 per day. As the original meeting, the government agency was reluctant to comment on this meeting behind closed doors. Regardless, many see this meeting as a promising sign for the eventual approval of a cryptocentric ETF on US markets.
Not so fast: the SEC commissioners are still worried about the Bitcoin ETF
Although giant steps have been taken towards the cause of a completely US-based bitcoin ETF, a number of SEC commissioners recently expressed concerns about such a vehicle, which would be a "previous-setter" if green or denied.
As reported by Ethereum World News just a few days ago, Jay Clayton, who took over in May 2017, said he was not ready to spot a Bitcoin ETF at Consensus: Invest. By making his acclaimed statement credible while referring to the role of the SEC in mitigating investors' risk in the financial markets, Clayton initially raised the lack of market surveillance in the encrypted markets.
While blockchains are based on a semblance of transparency, as opposed to this nature, the SEC decision maker noted that there is an obvious lack of good-faith surveillance implementations on cryptographic platforms in general.
Clayton then explained that investors expect a commodity-backed fund to be free of manipulation, alluding to his sentiment that Bitcoin is susceptible to questionable price action on a group's whim, or through orders executed by bad actors.
Along with his fears about appropriate surveillance measures, Clayton also touched on his opinion that while giant steps towards impenetrable custody solutions have been made, these cryptographic services are still lacking.
Although the Commissioner's statements are not a bullish signal, it is a positive side, as the 4,600 SEC employees are not known for having similar views on specific and emerging markets and products. As evidence of this, Hester Peirce has recently stated that a Bitcoin ETF on US markets is possible, all but impossible.
Title Image Courtesy of Samuel Zeller on Unsplash
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