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Solid X and VanEck Not Surprised by the Delay

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The crypto market has been anticipating for the decision of the US Securities and Exchange Commission regarding the Bitcoin ETF application by VanEck and Solid X. So far, a number of Bitcoin ETF applications have been denied. Cameron and Tyler Winklevoss have already attempted twice, and the most recent rejection was due to the possibility of price manipulation.

Last week, the agency has delayed their decision yet again on the Bitcoin exchange-traded fund (ETF)submitted by Solid X and VanEck. The decision is going to be made on December 29. There is a law that governs the agency that suggests that the “proceedings to determine whether registration should be denied” gives the agency up to 180 days before making a new decision. This means that there is a chance that we won’t be seeing a decision until July 2.

 Not Surprised by the Decision

This time around, despite the delay, it seems that the market isn’t exactly alarmed. VanEck and SolidX expected this, If you will ask Gabor Gurbacs who works as the director of digital asset strategy for VanEck, he thinks that the delay was actually “expected”. He also reiterated that the company is committed to bringing “a liquid insured and approximately regulated physical bitcoin ETF”.

As for the CEO of Solid X Dan Gallancy, he mentioned that the decision by the agency to delay the approval or the rejection of the application has no effect whatsoever regarding his outlook. Industry experts such as Eric Balchunas who works as senior ETF analyst for Bloomberg Intelligence isn’t surprised and mentioned that the order basically looks “like more of the same in terms of seeking comment and asking questions regarding some of their major concerns”. He also added that “My odds of approval have not changed in either direction”. As of August 3, he believes that the chance of approval before 2018 is between 5 to 10 percent.

 What Makes Solid X and VanEck Bitcoin Proposal Unique?

It is the only “physically-backed” Bitcoin ETF proposal. What Solid X and VanEck is going to do is to issue shares form the fund. The initial price will be at $200,000.

For Balchunas, he said that what the agency did is “a baby step towards a real ETF”. He thinks that what ETFs are going to do in the market once it becomes a reality is that “anyone, anywhere” can buy a Bitcoin minus the “painful” process of setting up an account or even having your own crypto wallet.

However, as for Jake Chervinsky who is an attorney at law firm Kobre & Kim, the agency raises “tough questions”. These questions will ultimately give us an idea if there truly is market manipulation involved in the industry. But of course, these questions “aren’t new” according to Gurbac. He said that “(The SEC) just needs time to understand the markets better…We have answered pretty much every question that was asked and especially the 18 questions…around liquidity, pricing, market manipulation, it’s all part of our application on how we address that”.

Despite having a pro-crypto commissioner today, there are those that see Bitcoin ETFs unnecessary as well. There are the likes of Vitalik Buterin who thinks adoption is what the industry needs. And also, you have the likes of Andreas Antonopoulos who criticized Bitcoin ETFs for not staying true to the use of Bitcoin questioning privacy and control compromises involved in ETFs.

Mark Ayesa

Mark manages our editorial team, social handles and is always on the lookout for great writing talent to contribute to our site. On a day-to-day basis he ensures the content on CryptoCurrency365.com is of the highest quality and also carries out extensive research on any current hot topics of the crypocurrency world for our writers.

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