VanEck, SolidX Makes a case for the Bitcoin ETF at the last meeting with US SEC
The US Securities and Exchange Commission (SEC) has published a memorandum on November 28 at the latest meeting on a proposal from the ETF (Bitcoin (BTC)). The application was originally submitted to the commission by the American investment company VanEck and blockchain software and the financial services company SolidX.
According to the memorandum, representatives from VanEck and SolidX and from the Chicago Board Options Exchange (CBOE) meeting met members of the Corporate Finance Division, Division for Commerce and Markets, Division for Economic and Risk Assessment and General Consultant's Office on November 26th.
As previously reported, in June 201[ads1]8, VanEck joined SolidX to apply for physically supported Bitcoin ETF to be listed on CBOE's BZX Equities Exchange: its approval or default is still pending since the SEC postponed its decision in August .
In the middle of the presentation's argument, a comparison of Bitcoin was a product with more traditional assets – crude oil, silver and gold – all of which already have ETFs on the market.
In an analysis of price formation over traditional goods together with Bitcoin, the team argued that "[s] imites gold and silver, Bitcoin achieves its value as a" money replacement "(as opposed to crude oil, which is a" pure industrial item ").
The presentation emphasized that" all three traditional commodity terminals show "empirical evidence" that "spot and futures prices are coordinated," which indicates they are closely linked. "The same as the presentation concerns Bitcoin spot and futures, and this pattern – for all raw materials at hand – is "proof of a well-functioning capital market."
In another key argument, the VanEck-SolidX team claimed that Bitcoin was actually more resistant to market nipulation than its traditional counterparts with approved ETFs.
In the case of physical goods, the team said that "inside information" such as "the discovery of new sources of supply" or "significant disturbances" at production sites could be utilized. Bitcoin are these situations "unusable", according to the applicants.
Among other examples of Bitcoin's "Resilience" for manipulation, the presentation included the lack of a "strong concentration of funds on any Bitcoin Exchange or OTC Platform," Given that "[a] Rbitrageurs may have funds distributed among more trading platforms to take advantage of temporary price differences. "
Furthermore," the arbitration process also benefits Bitcoin compared to other commodities, such as oil, because Bitcoin's homogeneity provides a unified global marketplace instead of regional semi-independent markets as a leader for non-fungibility and market fragmentation. "
As previously reported this week, VanEck has just announced a partnership with the world's second largest stock exchange. Nasdaq jointly launches a set of" transparent, regulated and monitored "digital asset products that begin with a bitcoin futures contract, slated for as early as Q1 2019.
