Bitcoin is similar to gold and silver, VanEck & SolidX argue with SEC

01 Dec, 2018 | Updated: 01 Dec, 2018
by Fifi Arisandi
Bitcoin is similar to gold and silver, VanEck & SolidX argue with SEC

VanEck had another meeting with the Securities and Exchange Commission (SEC), which was joined with SolidX and Chicago Board Options Exchange (CBOE). 

The Securities and Exchanges Commission (SEC) just had a meeting with VanEck & SolidX, which was also joined by Chicago Board Options Exchange (CBOE) regarding their Bitcoin (BTC) ETF proposal.

According to the official memorandum published by the commission, the representatives of VanEck and SolidX presented their arguments on why Bitcoin should have an ETF by comparing it to traditional commodities, such as gold and silver.

Unlike crude oil, which is a pure industrial commodity, Bitcoin is more similar to silver and gold as it also derives its value as a “money substitute”, the analysis of price formation shows.

The VanEck and SolidX team also argued that Bitcoin is more resistant to market manipulation than the aforementioned commodities as exploitation to crucial information, such as the discovery of new sources of supply is inapplicable for Bitcoin.

Moreover, Bitcoin’s lack of strong concentration of funds on any exchanges or OTC platforms makes it difficult for arbitrageurs to take advantage of temporary price dislocations, thus making it more resistant to manipulations.

The team also presented the similarity between the largest cryptocurrency and the traditional commodities when it comes to how the spot and futures prices are tightly linked, on which they claim as an “evidence of a well-functioning capital market”.

Despite the multiple rejections they've received for their ETF proposals, VanEck persistently approaches the SEC with the hope to make the commission change their mind on their active proposal.

For the record, this is not the first time for VanEck to have a meeting with the SEC, where they get to present their arguments about the Bitcoin ETF.

Aside from lobbying the SEC, the company also actively finds "alliances" to join their "fight"; Nasdaq, Genesis Trading and Circle Trade are some that's just added to the partners portfolio.

VanEck chief strategist clearly stated that Bitcoin ETF is a multi-billion dollar investment, as reported earlier this month by Chepicap, which may explain the company’s relentless efforts to make it come true.

The SEC's decision on VanEck's latest BTC ETF proposal is said to be announced before the year ends on December 29th, although it is likely to be pushed back to February 29th. 

Will VanEck's dream of Bitcoin ETF come true? Stay here on Chepicap for updates. 

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