U.S. asset management company VanEck is re-challenging for approval of a Bitcoin-based Listed Index Fund (ETF). On the 30th, Van Eck submitted an application for the establishment of the VANECK BITCOIN TRUST to the US Securities and Exchange Commission (SEC).
Bitcoin ETF is a derivative product that makes Bitcoin like a stock and allows it to be traded on the stock market. It has the advantage of simplifying Bitcoin investment and reducing the psychological distance of investors to cryptocurrency.
For these reasons, many asset managers have submitted applications to the SEC to establish bitcoin ETFs so far, but the SEC disapproved all nine bitcoin ETFs received in August 2018.
Van Eck also pledged to withdraw the establishment of the Bitcoin ETF in September 2019. However, as institutional investors investing in bitcoin recently surged and the price of each piece approaches $30,000, it appears that they have applied for establishment again.
The fact that SEC Chairman Jay Clayton recently officially resigned is also positive news for asset managers looking forward to Bitcoin ETFs. Chairman Clayton is the one who rejected the bitcoin ETFs received so far.
Dahlia Blas, head of SEC’s investment management headquarters, will also end his term in January next year. They have pointed out that the bitcoin market is not large enough to approve ETFs or liquidity, and there must be a mechanism to prevent market manipulation.
Translation: Donghwan Kim/Coindesk Korea
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