The journey of VanEck SolidX can be traced back to March of last year. The organizations first joined together to form the Bitcoin trust venture and potentially push for the world’s first Bitcoin ETF. Their first application to the SEC was outright rejected, and it would ultimately take about two more attempts before the SEC gave executives the attention they deserved.
The organization didn’t say “no” this time. In fact, officials seemed genuinely interested in the idea and even consulted industry experts to gather information on the ETF and its prowess. Furthermore, the SEC also posted the application for public comment – eager to see if both traditional and institutional investors would be interested in taking part in the ETF.
The application was met with positive acclaim from commenters, which prompted the SEC to enter “think mode.” Officials later said they would make their decision regarding the ETF by August of 2018, though this was later postponed to September 30. That decision was again postponed to December.
As we enter the final month of 2018, it appears VanEck SolidX is doing all it can to keep the ball rolling and receive a stamp of approval. Many analysts continue to claim that the business’ application is the one that has the most chance of getting a greenlight. The SEC hasn’t turned the application down as of late, but they are taking their time and considering all possibilities to ensure their decision is correct and well-balanced.
In the company’s latest presentation, executives try to levy the SEC’s concerns by suggesting Bitcoin is one of the few commodities today that, along with silver and gold, can serve as a money substitute. Other commodities offered via ETFs, such as crude oil, do not fall into this category.
In addition, executives claim Bitcoin futures are safe in that like commodity futures, the spot and futures prices are tightly linked. This allegedly serves as evidence of what they call “a well-functioning capital market.”
In a separate section of the presentation, VanEck SolidX argues that bitcoin futures accumulated more than $150 million per day in the third quarter of 2018. This is significant when compared to the estimate of roughly $50-$100 million per day for simple freight futures, which VanEck SolidX alleges was approved without appropriate means of preventing fraud and malicious activity.
Bitcoin futures, on the other hand, was, and executives try to show that they are taking steps to ensure investors identities and funds remain safe. They also say that the Bitcoin futures market remains stable, with several recorded trades exceeding $250,000 and within the present guidelines set by the SEC.
To view the full presentation, click here.
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