VanEck to Inform SEC About Bitcoin ETF

Earlier the SEC rejected all applications for the launch of Bitcoin-ETF
25 July 2018   1601

New York investment fund VanEck Associates has made a new attempt to inform SEC of its position on bitcoin-ETF and potentially push it to issue a permit to launch such a financial instrument.

As Bitcoinist writes, on July 20 VanEck sent a letter to the SEC, in which it again expressed its belief that the industry is ready to accept and support the ETF.

As you may know, earlier the SEC rejected all applications for the launch of Bitcoin-ETF. In addition, in January the Commission informed VanEck representatives that it was necessary to give "satisfactory" answers to a number of questions, before it would consider it possible "appropriate for fund sponsors to initiate registration of funds that intend to invest substantially in cryptocurrency and related products."

Apparently, VanEck believes that the company has those "most satisfactory" answers.

In the Staff Letter, you raise a number of concerns for cryptocurrency and cryptocurrency-related investment funds concerning valuation, liquidity, custody, arbitrage, potential manipulation, and other risks. We believe these concerns have appropriate answers […] moreover, by offering investors exposure to bitcoin through a regulated investment product, we believe the proposed ETF will be consistent with the Securities and Exchange Commission’s […] mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

VanEck Letter

VanEck also analyzes each of the risks outlined by the Commission in detail and explains why they do not consider them an obstacle for launching Bitcoin-ETF.

Given the proposed ETF’s regulation under the Securities Act of 1933 and 1940 Act and the fact that it offers exposure via regulated and surveilled bitcoin futures, we reasonably expect the proposed ETF to reduce potential manipulation and operational risk associated with a bitcoin investment product. 

VanEck Letter

In June VanEck and SolidX filed a joint application for the opening of VanEck SolidX Bitcoin Trust - bitcoin-ETF, which will be immune from theft and loss of access to funds. The proposed product will be tied to a new index from Van Eck, which instead of exchanges will collect the price of bitcoin from US-based over-the-counter platforms. 

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   308

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.