Bitcoin ETF Request for Comment: 97% Positive

Since its launch last month we have been keeping an eye on the bitcoin ETF request for comment that the SEC has been running on its website.

The request for comment came as a result of the Chicago Board Operations Exchange (Cboe) filing a proposal for a rule of change to list bitcoin (BTC) shares issued by the VanEckSolidX Bitcoin Trust.

New York-based VanEck and blockchain platform SolidX joined forces earlier this year to draw up a bitcoin-based exchange-traded fund (ETF) and worked with Cboe Global Markets to put forward the proposal.

Why is there a bitcoin ETF request for comment?

The rule of change would enable a bitcoin exchange-traded fund (ETF) to be listed on the Cboe BZX exchange – one of four exchanges the Cboe runs. An ETF provides the ability to trade on the stock market with added liquidity and lower fees. Even if you’re not a trader, a positive ruling would undoubtedly cause a surge in the price of bitcoin.

Previous proposals to get permission to list a bitcoin-based ETF, such as that made by the Winklevoss twins for their Gemini exchange last year, have been rejected. This proposal, however, has received twenty times the amount of attention than any previous proposal – 97 percent of which has so far been positive.

Only six out of 210 comments made on the SEC’s bitcoin ETF request for comment were negative. Some detractors felt that the ETF would permit greater manipulation of the market while others suggested the ruling would, in fact, reduce manipulation.

Electrical engineer Cody Parm said:

“With the SEC passing an ETF for Bitcoin, we can now expect further legitimacy, security, and development. I don’t think anyone can deny the usefulness of blockchain technology and Bitcoin as an asset. There are much riskier investments that the SEC has passed for an ETF and this will open the doors to many people waiting at the sidelines.”

Further reports suggest that, other than on the website, the SEC has also been receiving tons of additional fan mail regarding the bitcoin ETF request for comment.

Possible delays on a decision

Initial reports suggested the SEC would make a decision on the ruling on August 10 but since then further investigation revealed the decision wouldn’t be before August 16. Now it would seem that even August 16 is being hopeful, as a popular cryptocurrency Youtube channel points out it could be as long as a year before the ruling is finalized.

Patience is a virtue, as they say, and my feeling is that a longer wait may not be a bad thing – it means the SEC is carefully considering all options. There is no point wishing for a quick decision if that decision is negative. Personally, I’d rather have a ‘yes’ sometime next year than a ‘no’ on August 16.

Considering the amount of positive feedback the SEC has received so far, it seems highly likely that this time it will be a ‘yes’.

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  • AlanOlson

    I said a week ago that there will be no decision on etfs anytime soon. The SEC wants to keep prices down as long as possible to allow their Wall street buddies to buy bitcoin before prices explode. Common sense is common sense.

  • splal

    They can actually defer in again 45 days more from August 16 so until Sept 30 ,then a final decision would have to be made. They CBOE already said even if it got approved wouldn’t fully launch for clients to purchase until Q1 of 2019. Here’s my thinking it will be delayed until sept 30 when it will be approved and will launch Q1 of 2019. Which would intern give us a nice bull run from Sept until official launch of ETF in Q1 of 2019.

  • WayneMoare

    Another call for a bull run. Why? What is the positive fundamental change?

    • WayneMoare

      The positive fundamental change would be the presence of regulation. And the SEC is only going to approve and ETF if they've prepared regulation for ICO. So, to answer you question, that would be significant change to the market fundamentals. If what you are saying is that you want changes to the cryptos in the space, then I'm not sure why that should be a precursor to a bull run