SEC to Seek Comment on Another Bitcoin ETF

Watchdog called for comments on a proposal by the Cboe to list and trade the SolidX Bitcoin Shares
28 June 2018   1631

The US Securities and Exchange Commission again wants to receive a comment regarding the potential launch of the bitcoin ETF. This is reported by CoinDesk.

The watchdog is waiting for comments on the offer of the Cboe exchange to list and trade of SolidX Bitcoin Shares, which in turn was proposed by VanEck SolidX Bitcoin Trust.

ETF will invest exclusively in bitcoin, the document says, as its net assets will "consist of bitcoin held by the Trust utilizing a secure process."

According to Cboe's application, ETF securities will become a tool for investing in bitcoins by players in traditional markets. While operators will buy and sell bitcoins in accordance with the needs of customers, the "trust will not be actively managed".

The presented ETF was the result of cooperation between the investment firm VanEck and the start-up SolidX. It marks the third attempt of VanEck to launch a mechanism for investing in bitcoin.

VanEck CEO Jan van Eck considers bitcoin to be a "full-fledged investment opportunity and" digital gold, "which can find a place in investor portfolios," despite regulatory barriers that his company faced in the past.

We believe that collectively we will build something that may be better than other constructs currently making their way through the regulatory process. A properly constructed physically-backed bitcoin ETF will be designed to provide exposure to the price of bitcoin, and an insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin.

Jan van Eck

CEO, VanEck

Although previously several companies tried to launch their own bitcoin-ETF, the SEC forced them to withdraw their bids. Then the regulator said that, among other things, it was concerned about the problems of volatility and liquidity of the cryptocurrency.

PBoC to Continue Anti-Crypto Propaganda

The regulator published a warning in its WeChat account called “Protection of the rights and interests of consumers of financial services”
23 March 2020   321

The People's Bank of China has returned to criticism of cryptocurrencies amid a worsening economic situation in the world.

On March 22, the regulator published a large-scale warning in its WeChat account under the heading “Protection of the rights and interests of consumers of financial services”. It describes three ways in which cryptocurrency service providers can mislead consumers.

First of all, the amount of fraud transactions with bots is serious. The average turnover rate of the top three overseas crypto currency exchanges is much higher than that of foreign licensed exchanges. Second, market manipulation exists in these exchanges where forced leveraged trading eventually causes the exchanges to explode. Third, money laundering is a big issue.


People's Bank of China

In addition, the Chinese Central Bank calls the opinion that Bitcoin may serve as a protective asset, erroneous. The regulator indicates its high volatility and recommends that citizens not follow the example of other investors and refuse to participate in cryptocurrency trading.