SEC met with SolidX, VanEck and Cboe to discuss the bitcoin ETF

On October 9, SEC Commissioner Elad Roisman and his counsels met with the representatives of SolidX, VanEck, and Cboe to discuss the prospect of bitcoin ETF. Mr. Roisman and the other parties discussed a pending application of Bitcoin ETF VanEck SolidX Bitcoin Trust. The VanEck SolidX ETF's shares would be traded on the Chicago Board Options Exchange (Cboe) and would purchase bitcoin primarily in the OTC markets. The share price would be ~$200,000 (25 bitcoin per share) and the trust would be insured against loss or theft of bitcoin.

The SolidX Bitcoin Trust filed the first application in March 2016 with the NYSE as the listing venue but the application was ultimately rejected in March 2017. The representatives filed a new application in 2018 and now argue that there had been significant changes in the circumstances since the last rejection. The circumstances include:

  • CFTC regulated derivatives markets exist
  • ETF will use OTC bitcoin trading desk pricing
  • Proliferation of information sharing agreements
  • Not available for retail (~$200,000 share price)

Moreover, SolidX, VanEck and CBOE said that they think the ETF should be approved because the concerns around price manipulation have been mitigated. The full presentation is uploaded on SEC's website. The final deadline to make the decision is set on March 2019.