The era of exchange-traded funds for Bitcoin may begin as soon as the SEC flirts with the idea of accepting proposals from CBOE and the VanEck SolidX Bitcoin Trust. However, we’ve already witnessed the same organization’s rejection of an ETF proposal by the Winklevoss twins known as the Winklevoss Bitcoin Trust.
Although the SEC doesn’t have confidence that the Winklevoss twins’ proposed product would be able to hold its own against price manipulation, there’s reason to believe that VanEck’s ETF will hold up to the financial watchdog’s scrutiny. At the very least, this is what eToro senior market analyst Mati Greenspan believes.
“The VanEck ETF is specifically designed to suit the needs of institutional investors. The contract size is set at 25 BTC, which is about $200,000 at today’s prices. So, [it’s] certainly not for your average Joe. When a hedge fund investor who manages billions of dollars is considering to diversify their portfolio into Bitcoin, they don’t want to deal with things like private keys and cold storage. They also need the assurance of a trusted counterparty and a regulated exchange. Furthermore, VanEck’s BTC ETF will be fully insured, which is a very comforting thought when dealing with this type of capital,”
Greenspan told us in a conversation on social media.
As last month drew to a close, investment firm VanEck partnered with blockchain startup SolidX to submit a proposal for a Bitcoin ETF as a duo, hopefully sweetening the deal enough that the SEC would be less reluctant to approve the product.
This happened after VanEck had previously been rejected a couple of times. CBOE suffered the same blows as the race to start the first ETF for Bitcoin continues.
Neither firm seems to want to go down without a fight, taking more interesting methods to coax the SEC to give its blessing and allow the market to take shape. Nonetheless, it’s still anyone’s guess whether VanEck would truly be the best contender in this particular game.
Still, having an insured product with a fully managed solution that caters to hedge funds might just push things over the edge and satisfy the SEC.
This article appeared first on Cryptovest
