Representatives from VanEck and SolidX met with the US Securities and Exchange Commission commissioner Elad Roisman and discussed why the SEC should approve the ETF filing of both of these companies, which is great new information that we are presenting you in today’s crypto news.
VanEck is an investment management company based in New York that successfully maintained its track record in the traditional finance sector which is why they asked the SEC to consider approving its Bitcoin ETF mainly because of five important reasons:
- Investors will get bigger protection
- Relevant markets are regulated
- Derivatives on the market for bitcoin are regulated
- Price manipulation concerns have alleviated
- CBOE’s rules are designed to keep an eye for potential Trust Shares manipulation.
The SEC has already rejected the Winklevoss Bitcoin ETF because of it mainly relies on a public crypto exchange. The SEC believes that crypto exchanges aren’t sufficiently regulated and don’t have the liquidity to handle an ETF.
VanEck and SolidX held a representation where they told the SEC that the futures market is now able to handle ETFs and their operations through the Depository Trust and Clearing Corporation. They also emphasized that the approval will bring a decline in risk for investors and will increase the stability of the market.
“As of now, no CCPs support the clearing of bitcoin Investors are left facing absolute counterparty risk. Such risks are often unacceptable to many investors An ETF provides a straightforward solution for investors seeking price exposure without facing counterparty risk, as the ETF would be cleared through DTCC Furthermore, in creations and redemptions, the Trust always requires APs and trading counterparties to settle their leg of the trade before the Trust will do so.”
According to analysts, VanEck has the biggest chance in getting the approval.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]