VanEck gave the SEC “competent answers” regarding …
VanEck Gives SEC “Competent Answers” Regarding Bitcoin ETF Risks
Investment manager VanEck makes new attempt to motivate the US Securities and Exchange Commission (SEC) to approve applications to launch exchange traded funds (ETFs) pegged to bitcoin.
In a letter dated July 20, VanEck, which had previously announced its intention to partner with SolidX to launch the fund, reiterated its view that the industry is ready to accept and support ETFs..
The SEC has previously rejected all applications to launch bitcoin ETFs, and in January told VanEck that it has a variety of questions that need to be answered “satisfactorily” before it considers it possible to “initiate registration of funds intending to invest primarily in cryptocurrencies and related products “.
VanEck believes it has found decent answers for the SEC.
“In the letter, you outlined a number of concerns about cryptocurrencies and cryptocurrency-related investment funds regarding their valuation, liquidity, storage, arbitrage, potential for manipulation and other risks,” the firm writes. “We believe we have found competent answers to these questions. Moreover, we believe that the proposed ETF will be able to provide investors with access to bitcoin through a regulated investment product and thus meet the Securities and Exchange Commission’s mission of protecting investors, maintaining a fair, orderly and efficient market, and generating capital. “.
VanEck goes on to examine in detail each of the risks identified by the SEC, explains why it does not consider them an obstacle to launching a Bitcoin ETF, and demonstrates that the market for the largest cryptocurrency is liquid and diversified..
“Given the fact that ETFs will be regulated under the Securities Acts of 1933 and 1940. and that it will operate through regulated bitcoin futures, we reasonably expect the proposed ETF to limit the scope for manipulation and reduce the operational risks associated with bitcoin investment products, ”VanEck said in a letter.
Earlier it became known that the SEC received a large number of positive comments regarding the potential entry into the Bitcoin ETF market.
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