SEC’s recent decision to ask the public about their thoughts on CBOE’s Bitcoin ETF request has seen an outstanding amount of support for the project. Over 97% of commenters have shown interest in it, and the SEC’s final decision is to come by September.
The Public Supports Bitcoin ETF proposal
A little over a month ago, the CBOE (Chicago Board Options Exchange) has filed a request with the SEC (Securities and Exchange Commission) to receive a permission to start an ETF (Exchange Traded Fund) based on Bitcoin. In order to see how the public felt about it, the SEC has invited the US citizens to share their thoughts and comment on the idea.
Nobody has expected such an overwhelming amount of support for Bitcoin ETF, however, and over 97% of commenters have shown interest in the idea. Not only were people commenting positively on the SEC website, but the Commission even admitted to receiving tons and tons of emails regarding the request. By now, the SEC has ended the comment period, but the public has already made quite an impression.
What happens next depends solely on the SEC itself, and their decision is expected to come by September. Many believe that the decision will end with an approval of the request, which was confirmed by an unnamed source from the SEC itself.
One CFTC official was reported to say that the chances for an approval are roughly 90%. The biggest concerns regarding Bitcoin, according to the official, came back in January, when everyone was calling it a bubble, and the risks of losses and lawsuits were great. Now, however, the lack of Bitcoin drama has shown that these factors might have been eliminated in the last six months. This, in combination with the adoption of peer product, and the recent price moderation, has seen a lot of positive impacts, and the SEC might be willing to give Bitcoin ETF a chance.
What is the Trust All About?
One of the commenters on the SEC website, an electrical engineer by the name of Cody Parm, has said that SEC’s decision to pass the request might lead to more legitimacy, further development, and increase in security. At this point, Parm believes that the usefulness of Bitcoin and the blockchain tech in undeniable. The SEC has passed much riskier projects, and there is no reason not to do so for Bitcoin ETF.
The request, as mentioned, was filed by the CBOE Global Markets, and the company has partnered up with a blockchain platform SolidX and a firm called VanEck, which is based in New York. The request was filed under the name Vaneck Solidx Bitcoin Trust and is commonly known as ‘the Trust’. If granted, CBOE has said that it will allow OTC trades for accredited investors.
The application claims that the Trust will only invest in Bitcoin and that its activities will only include several actions. Those will include things like Basket-issuing (in exchange for BTC or cash deposits), BTC purchase from different exchanges, cash/BTC delivering, maintaining the coverage of insurance for the coins that the Trust will be holding, as well as securing the Trust’s coins.