Third time is a charm for a bitcoin ETF

06 Jun, 2018
by Michael De La Rouge
Third time is a charm for a bitcoin ETF

On the third try at gaining a bitcoin ETF, VanEck is joining forces with Solidx to provide investors with more options to dive into the crypto world. 

This time around it is different because VanEck will back up the ETF using Bitcoin instead of using the plan before, which was using Bitcoin futures. A filing with the SEC states each share will be $200,000. Now that some time has passed since bitcoin topped out at almost $20,000 per coin, the SEC may be more inclined to allow an ETF. Especially since the trust will be holding bitcoin privately. 

A lot has happened since the first filing of a Bitcoin ETF, the first one was back in August when BTC price was trading around the 4k mark. According to CNBC, per requests of the SEC staff, the two other ETFs from VanEck had to be withdrawn. After the first filing, Bitcoin futures had not been released yet; the second one was asked to be withdrawn due to extreme price fluctations and lack of liquidity. 

Maybe VanEck and SolidX will be the dreamteam to make this ETF happen. We need institutional money to continue the mass adoption and the most effective way is to introduce an ETF. This is good news for Bitcoin as a whole, since the average investor will not be able to purchase a $200,000 share in the trust.  

The next round of attempts is near and it will be interesting how the SEC reacts to it this time. 

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Read more about: Bitcoin (BTC)


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