News Cboe BZX Exchange Submits Second Bitcoin ETF Proposal

Cboe BZX Exchange Submits Second Bitcoin ETF Proposal

-

- Advertisment -

Here they go again.

The Cboe BZX exchange has submitted a new proposal to the US Securities and Exchange Commission (SEC) requesting a rule change that would allow for the first bitcoin exchange-traded fund (ETF).

Like the previous proposal, the new document suggests a rule change to a provision outlined in Section 19(b)(1) of the Securities Exchange Act of 1934 that would allow for SolidX bitcoin shares to be listed and traded on a US exchange. The shares would be issued by the VanEck SolidX Bitcoin Trust, which would be responsible for holding the bitcoin that backs said shares.

According to the proposal, “[E]ach Share will represent a fractional undivided beneficial interest in the Trust’s net assets.” The proposal also states that because each share will cost the same as 25 bitcoin, the company expects that only “institutional and other substantial investors” will be able to afford to invest in the ETF:

“[T]he Shares will be cost-prohibitive for smaller retail investors while allowing larger and generally more sophisticated institutional investors to gain exposure to the price of bitcoin through a regulated product while eliminating the complications and reducing the risk associated with buying and holding bitcoin.”

The SEC must make a decision to deny or approve the proposal within 45 days or request an extension of up to 90 days if it needs more time to review the proposal.

The saga of the SolidX ETF has been unfolding since June of last year, when the companies first filed their proposal. The SEC decision on that proposal was delayed until September before being delayed again, with the SEC promising a decision would be made by February 27 of this year. In a surprising turn of events, the companies withdrew their initial proposal just last week.

Nathan Graham is a full-time staff writer for ETHNews. He lives in Sparks, Nevada, with his wife, Beth, and dog, Kyia. Nathan has a passion for new technology, grant writing, and short stories. He spends his time rafting the American River, playing video games, and writing.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest Cboe, BZX or other Ethereum business and finance news.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came under new ownership in December 2019. Since taking over the exchange,...

Fungibility: Bitcoin Mixers Favorite Term That No One Understands

Fungibility, perhaps the most important concept when dealing with a decentralized and anonymous currency, but does bitcoin...

Crypto can’t thrive in the real world – but stablecoins can

We can safely say that the hype about cryptocurrencies is pretty much over. The claims of Bitcoin...

How to double your crypto

Most of us have a small gambler deep inside our souls. We love to feel the thrill...
- Advertisement -Cboe BZX Exchange Submits Second Bitcoin ETF Proposal

Cryptocurrency Top Security Risk Concerns: What You Can Do to Protect Your Crypto

A report by CipherTrace revealed that in the first half of 2019, criminals and fraudsters stole more...

How has Bitcoin of America Changed the Cryptocurrency Industry?

Who is Bitcoin of America? Bitcoin of America is a U.S. based digital currency...

Must read

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came...

Fungibility: Bitcoin Mixers Favorite Term That No One Understands

Fungibility, perhaps the most important concept when...
- Advertisement -Cboe BZX Exchange Submits Second Bitcoin ETF ProposalCboe BZX Exchange Submits Second Bitcoin ETF Proposal

You might also likeRELATED
Recommended to you