Much of the recent bullish Bitcoin speculation revolves around the possible approval by the U.S. Securities and Exchange Commission (SEC) of a Bitcoin exchange-traded fund (ETF). There are multiple entities applying for an ETF and one of them is the exchange Cboe BZX, whose proposal was recently rejected by the SEC.
Another one is the New York-based investment management firm VanEck, which partnered with financial technology company SolidX. Both companies are currently waiting for their ETF proposal to be approved by the agency.
So why was Cboe BZX’s Bitcoin ETF rejected while the VanEck-SolidX proposal is still being considered? The SEC explains that the former did not meet the requirements to ensure that their ETF is designed to protect investors from fraudulent and manipulative practices. Meanwhile, the latter’s proposal achieved the necessary conditions that the agency is asking for, that’s why it is evaluating the VanEck-SolidX Bitcoin ETF, Coindesk reported.
What this means is that if VanEck-SolidX is attacked by hackers after SEC approves their ETF, then any loss suffered during the incident will be shouldered by the company while the investors’ assets are insured. This financial protection is important since hackers are quite active in the crypto space and Bitcoin ETF is a tempting target.
Should the SEC approve this ETF then it’s expected that Bitcoin’s value will take a sudden spike since a lot of people will be willing to invest their money in the fund. However, quotidian investors will not be able to participate easily since VanEck and SolidX announced they’re going to set the price at a minimum notional value of $200,000.
Phil Bak, a former managing director of the New York Stock Exchange and current CEO of Exponential ETFs, said that this move is quite brilliant. He explained that by setting the notional value at $200,000, the partnership ensures that everyone trading the Bitcoin fund is an accredited investor. Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, predicted that this Bitcoin ETF has a 5 to 10 percent of chance of being approved by the SEC this year.


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