New York-headquartered investment management company VanEck, which was denied its ETF application in August, has met with the SEC to discuss its status, armed with a document outlining five reasons it should be approved.
According to the document, the issues that resulted in the rejection of its first approval have since been resolved. An extract from the document reads:
· There now exists a significant regulated derivatives market for bitcoin.
· Relevant markets – Cboe, bitcoin futures, OTC desks – are regulated
· Concerns around price manipulation have been mitigated, consistent with approval of prior commodity-based ETPs
· Cboe’s rules are designed to surveil for potential manipulation of trust shares
· Promotes investor protection
As reported by Chepicap, SEC Commissioner Kara Stein clarified the SEC’s position on the recent ETF delay, explaining that the proposals have been taken “very seriously” but the crticial requirement are “valuation, liquidity custody and making sure firms are thinking through how to deal with all those issues”.
There are several big Wall Street players that are entering the crypto space, with Intercontinental Exchange confirming this week that it would be launching its cryptocurrency platform Bakkt on December 12, pending regulatory approval.