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VanEck Responded to SEC’s Concerns on Bitcoin ETFs


Investors are quite excited at this point about the possibility of another bull-run. Could this be a chance to surpass last year’s all-time high?

The primary reason why Bitcoin is currently bullish, is because of the possibility of having a Bitcoin ETF. A Bitcoin ETF could easily solidify the entire market in the eyes of regulators and investors alike. Unfortunately, Winklevoss Twins’ second attempt for a Bitcoin ETF has been shut down by the SEC. The US Securities and Exchange Commission mentioned that it is concerned over price manipulation.

Though there are experts saying that the agency simply needs some time in order to finally make a decision, this move has dropped Bitcoin’s price momentarily below $8,000.

VanEck’s Response

Since the attempt of Winklevoss Twins’ for a Bitcoin ETF has been shut down yet again, VanEck decided to send a letter directed to Dalia Blass who is the director of the SEC’s division of investment management. The letter addresses five points including valuation, liquidity, custody, arbitrage, and potential manipulation.

Could Bitcoin Be Manipulated?

According to VanEck, the risk regarding Bitcoin being manipulated is mitigated since it is going to be a regulated product that is traded on the US exchange.

According to the letter, “While one cannot rule out manipulation in the underlying spot market, we believe that, due to the diversified ownership and volume of trading, the market does not have major, structural vulnerabilities. Therefore, the Commission’s increased enforcement and regulatory actions can reduce the number of bad actors in a basically sound market”.

The second rejection by the SEC to the recent Winklevoss twins’ ETF application is still consistent to its first rejection back in March 2017. However, it is a good thing to point that the US SEC isn’t actually closing its doors on these things. The SEC even mentioned that “over time, regulated bitcoin-related markets may continue to grow and develop”.

Demand for ETF Escalating

Does it mean that CBOE’s Bitcoin ETF is also bound to experience the same fate? If you will ask Joseph Young, he thinks that these ETFs are totally different versions. And this could mean that the Securities and Exchange Commission could actually be approving the other despite its hesitation to the Bitcoin ETF application raised by the Winklevoss twins.

According to a tweet by Joseph Young, who is a blockchain journalist from Hong Kong,  “selling Bitcoin because you expected CBOE ETF to be approved by Winklevoss ETF got rejected is like selling Twitter shares because Facebook plunged 22{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff}” He added that “These two are not the same”.

Optimistic To the Future of Crypto

Should you be optimistic regarding the future of cryptocurrencies at this point? Many are still optimistic considering how SEC is open-minded regarding the crypto industry. One particular move that made the SEC open to the technology is the fact that it has now considered Bitcoin and Ethereum not as securities.

However, it is also true that no one really knows the future of crytpos at this point, we will all have to wait in order to find out what is next for the crypto market.



Lee Jenkins

Lee is our resident cryptocurrency expert who knows the ins and outs of each coin and the blockchain technology behind them. You’ll find that most of our technical guides are written or overseen by Lee and they are all easily digestible by the new and experienced alike, so there is no better place to learn blockchain 101 than here. Occasionally you may see a news article from him if it’s tech related!