VanEck is moving to address the Securities and Exchange Commission’s (SEC) concerns regarding bitcoin exchange traded funds, the latest step by the ETF sponsor to bring a bitcoin fund to market. In June, ETF sponsors VanEck and SolidX, a fintech company engaged in the bitcoin ecosystem, revealed plans for the VanEck SolidX Bitcoin Trust ETF (XBTC). That fund is targeted at institutional investors as it would debut with a share price of $200,000. That product would track an index linked to a group of bitcoin trading desks, possibly allaying some of the SEC’s prior concerns about funds linked to physical bitcoin. “The SEC had previously rejected the possibility of allowing ETFs from both companies in 2017, telling VanEck via a Staff Letter in January this year that various ‘questions” needed answering ‘satisfactorily’ before it would be ‘appropriate for fund sponsors to initiate registration of funds that intend to invest substantially in cryptocurrency and related products,’” reports Bitcoinist. A recent letter from VanEck to the SEC addressed some issues, including the use of futures and market liquidity. Bitcoin futures debuted on the Chicago Board Options Exchange (CBOE) in December with CME Group following suit just a few days later.
New York investment management company VanEck has told the Securities and Exchange Commission (SEC) its proposed bitcoin exchange traded funds would offer exposure via regulated and monitored bitcoin futures, potentially easing fears about funds linked to the digital currency. June the SEC turned down attempts by VanEck and finch SolidX to launch ETFs, and said it had questions that needed answering before it would allow such a move. In a written response, VanEck said linking the ETFs to a regulated investment product would "protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation".