Talks about a bitcoin exchange-traded fund have been in the headlines for the past several months. Comments from the public show a hesitancy toward the product.
The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the VanEck-SolidX bitcoin exchange-traded fund (ETF) Chicago Board Options Exchange (CBOE) listing rule alteration multiple times. The public also waits for a decision on Bitwise Asset Management’s bitcoin ETF, according to Fox Business.
The SEC’s website shows seven official comments over the past two months directed toward the CBOE-VanEck-SolidX bitcoin ETF decision.
The most recent comment listed from March 12, includes Mr. Santos‘ positive statements on the prospect of a bitcoin ETF. Santos listed several reasons why bitcoin “is revolutionary,” including its protection against inflation, and its resistance to seizure.
The Bitcoin advocate also brought up the notion that an ETF for the king of cryptos might actually help in the area of investor protection, in contrast to the stated SEC concerns of manipulation as a reason not to allow such a product.
Five comments are listed on the SEC site with a March 6 date. Commentor Barnwell actually commented against the prospect of a “Bitcoin ETP,” (exchange-traded product). Barnwell noted the SEC shouldn’t rush into the product, and also stated the importance of blockchain, even without the use of bitcoin.
Commentor Darwin simply stated, “There is no benefit in approving a Bitcoin ETF at this time. I vote reject.”
Yet another individual, Malone, requested a bitcoin ETF denial, saying, “I would like the committee to disapprove the proposed ETP. It has no value as a financial product let alone as a currency.”
Commentor Pinto additionally expressed negativity in the product due to bitcoin’s volatility, manipulation and lack of “real use case.”
February 13 saw remarks from commentor Ahn of Hana Trading USA Inc. Ahn mentioned this as their “eighth comment on bitcoin,” spanning 2018 and 2019. In a lengthy write-up, Ahn offered more details on “intrinsic value.” He also added, “The purpose of this one [comment] is to urge the SEC to ask a question to the applicant of SR-CboeBXX-2019-004.”
(It was rather difficult to interpret Ahn’s sentiment on the situation one way or the other.)
Based on the number of comments mentioned, tendencies to reject the proposal outweigh the positive remarks that may point out to approval.
The VanEck-SolidX bitcoin ETF and the Bitwise Asset Management product have a decision date coming up on April 5, according to CoinDesk.