It’s been revealed dozens of additional pages and new compelling precedent arguments have been included in the refiled VanEck/SolidX Bitcoin ETF proposal.
The proposal, originally filed with the US Securities and Exchange Commission (SEC) in June 2018, was withdrawn last month amid the US Government shutdown.
But just days later the application was resubmitted, when the shutdown ended.
Now VanEck’s Head of Digital Assets, Gabor Gurbacs, has revealed the Bitcoin ETF’s proponents took the opportunity to refine the application.
“There are some changes on it, we have incorporated changes to the proposal based on regulatory feedback and based on feedback from market participants,” said Gurbacs on CNBC’s Crypto Trader show.
Bitcoin more advanced than other markets
Gurbacs says new compelling arguments have been made, demonstrating how the SEC has, in the past, approved ETFs based on markets less “built out” than Bitcoin.
“Basically analogous markets, so like they’re gold and commodities markets and some of the shipping markets… So we have presented some scenarios were the SEC approved an ETF which had less transparency to the market, where pricing in those markets were not as built out as Bitcoin and the custody of the underlying assets were also not as built out,” he said.
“We added some of those precedents and we have made an effort, last year actually, to publish some of our correspondence with the regulators and meetings that we had to let the market know what we learned.”
New “hardcore analysis”
VanEck along with ETF partners SolidX and Cboe Global Markets also took the opportunity to compile an additional 30 pages documenting their extensive consultations undertaken since the ETF application was first submitted.
According to Gurbacs the addition pages outline learnings and findings from dozens meetings with regulators and market participants.
“Something like 30 pages were added, it’s hardcore analysis on why Bitcoin is ready for an ETF.”
Once the refiled ETF has been published by the SEC, Commissioners have 240 days to make a decision.
Despite the Government shutdown only lasting a few days after the original Bitcoin ETF was pulled, Gurbacs has defended the decision to withdraw.
“When there’s no one in the office and no one picks up the calls, then you can’t solve these questions, so we certainly didn’t want to get an answer that might not be the answer we wanted for the ETF because everyone’s out of the office.”
Most interesting aspects of #Bitcoin to me:
+ Non-sovereign issued
+ Scarce/supply constrained
+ Hard to confiscate
+ Native to the Internet/electronic
+ Settles fast
+ Connects interesting strangers from all kinds of places and background. pic.twitter.com/nqGizFE86B
— Gabor Gurbacs (@gaborgurbacs) February 7, 2019
Commissioner predicts Bitcoin ETF will eventually be approved
A draft article for the ‘Congressional Quarterly’ publication has been leaked on Twitter.
In the article SEC Commissioner Robert J. Jackson Jr. comments on the prospects of a Bitcoin ETF being approved.
He says he believes it will eventually happen.
Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so,” he’s quoted as saying.
But he took a swipe at the quality of the Bitcoin ETF proposal submitted by Cameron and Tyler Winklevoss.
It was rejected by the SEC in July last year.
“The case that we had last year involving the Winklevoss trust, in my view, was not a difficult case. So there you had a situation where the risk for manipulation and for people getting hurt was enormous. The liquidity issues in the market were very serious,” said Commissioner Jackson Jr.
“I’m happy to say market participants have come in with new ideas… Whether or not we’re going to find one that really protects investors, I don’t know, but I do know that that case wasn’t especially close.”
#SEC Commissioner Jackson in an interview to be published next weeks is optimistic that a "fund based on #bitcoin" will eventually be approved, expresses concern about the proposed ETFs submitted to date. pic.twitter.com/3BCuiBd4CB
— Drew Hinkes (@propelforward) February 5, 2019