ETHERLive
ETHERLive delivers real-time price and volume data across 16+ exchanges to users in a clear and easy-to-understand package. Users can get up-to-the-second updates for each exchange/currency pair, as well as aggregated market averages for each exchange, currency, and the market as a whole. It also provides a global converted average of all the currency pairs monitored by ETHNews, converted to USD.

---

24hr ---
--%
Tuesday Dec 18th 2018
RESOURCES

The Basics

Learn the basics of Ethereum and various cryptocurrency technologies

Learn More

What is Ethereum?

Understand the underlying principles of the Ethereum Platform

Learn More

The Blockchain

Discover the revolutionizing technology known as the blockchain

Learn More
SUBMIT

Press Release

Submit a press release for consideration on ETHNews

Submit Press

Story / Dapp

Submit a story or DAPP to be considered for publication on ETHNews.

Submit Story

Explanation

Submit "Ethereum Explainer" content for consideration to be featured on ETHNews

Submit Topic
ETHNews Logo
---
--%
Home
News
Etherlive
Ether Price Analysis
Resources
Contact Us

SEC Delays Bitcoin ETF Decision Until Next Year

By

Nathan

Graham

WriterETHNews.com

The commission wants crypto to be free from the threat of price manipulation before it approves a bitcoin exchange traded-fund.

Yesterday, the US Securities and Exchange Commission (SEC) decided to delay a decision to approve a proposal presented by the Chicago Board Options Exchange (CBOE). The proposal outlined a rule change that would allow it to "list and trade shares of SolidX bitcoin shares issued by the VanEck SolidX Bitcoin Trust," thereby creating the first bitcoin exchange-traded fund (ETF).

According to the notice published by the SEC, the exchange first filed the proposal on June 20. On August 7, the SEC delayed its decision until September 20. However, the regulatory body again failed to make a decision, and yesterday announced it would again delay a decision on whether to approve the VanEck SolidX Bitcoin Trust ETF – this time until February 27, 2019.

Note: Although the CBOE filed its proposal on June 20, the investment management firms VanEck and SolidX first filed registration paperwork with the SEC to pursue a bitcoin ETF on June 6.

In a seemingly last-ditch effort to receive approval from the SEC, on November 28, representatives from VanEck and SolidX met with the SEC and made the case that the bitcoin market is mature enough and safe enough to support an ETF.

In a presentation, the two firms compared digital assets to physical assets such as crude oil, silver, and gold. Furthermore, they likened those markets to the bitcoin market, saying, "Similar to commodity futures, the spot and futures prices [of bitcoin] are tightly linked." In their eyes, this is evidence of a "well-functioning capital market."

When speaking to the resilience of bitcoin markets, VanEx and SolidX pointed out that 1) those who wish to manipulate the bitcoin market must have funds spread across multiple trading platforms; 2) the global price of bitcoin would have to be manipulated in order for it to be changed on a specific platform; and 3) "the homogeneity of bitcoin makes for a uniform worldwide market rather than regional semi-independent markets that result in non-fungibility and market fragmentation."

For these reasons, the two companies posit that bitcoin is no more vulnerable to price manipulation than any other commodity when compared to already approved exchange-traded products.

This presentation was brought before the SEC just one day after SEC chair Jay Clayton said he would only be comfortable in approving a crypto-related ETF when cryptocurrency is free from the threats of price manipulation.

The SEC has yet to approve a bitcoin ETF. In July, the SEC rejected a proposal for a bitcoin ETF presented by Cameron and Tylor Winklevoss. A month later, SEC staff rejected nine different proposals for bitcoin ETFs, although the commissioners later said they would review the action.

Just yesterday, Commissioner Hester Peirce, who is generally considered friendly to crypto, stated:

"Don't hold your breath. I do caution people to not live or die on when a crypto or bitcoin ETF gets approved. You all know that I am working on trying to convince my colleagues to have a bit more of an open mind when it comes to [crypto]. I am not as charming as some other people."

The SEC was not available for comment by press time.

Nathan Graham

Nathan Graham is a full-time staff writer for ETHNews. He lives in Sparks, Nevada, with his wife, Beth, and dog, Kyia. Nathan has a passion for new technology, grant writing, and short stories. He spends his time rafting the American River, playing video games, and writing.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest SEC, VanEck or other Ethereum law and legislation news.