Notes on Bitcoin ETFs for the community

Notes on ETFs for the community

So, the ETFs are delayed. Yet again. It comes as no surprise since we all were expecting the same. Yet the market dumped hard. You might have seen a correlation between the acknowledgement of Bitcoin by centralized organizations and the market reaction on it.

We still remember in 2016 or even 2017, when people gave a middle finger to regulation and institutions. Now everyone is begging and waiting for government approval. What a move huh?

We understand how much community perceives the importance of ETFs in Crypto but allow us to enlighten you, WE DON’T NEED THEM, INSTEAD, THEY NEED US. But, apparently, we are getting influenced by the same thing we swore to decimate in the first place. Yes, we are talking about centralized organizations and our strong craving for their acknowledgement. So, stop holding your breath and focus on what’s important for a true decentralized world.

So, stop holding your breath and focus on what’s important for a true decentralized world.

Also, Regarding the ETFs.

Do not expect SEC decision on the CBOE (VanEck-SolidX) Bitcoin ETF in 2018, so don’t hold your breath.

We see people being disappointed about the SEC delaying the decision on the ETF from VanEck-SolidX when actually nobody should have expected the SEC to approve the first-ever Bitcoin ETF within the first 45 days after the notice was published.

Everybody should be aware that the SEC will and should take the time it is allowed to by law, which is 240 days (45 days for the first and second extension, 90 for the third, 60 for the last).

What to expect now:
1. News about rejected ETFs likely in late August (link Proshares ETF)
2. Another series of news about Bitcoin ETF rejection in September (link Direxion ETF)
3. Both of the above ETFs are not commodity-backed (instead, they’re futures, at least the Proshares for sure) and thus, do not involve actually purchasing BTC. They could also be approved, but we don’t think that’s likely.
4. The final decision on the CBOE (VanEck-SolidX) somewhere around February-March 2019.


In Addition, here’s what makes the VanEck/SolidX ETF different.

If you don’t know what differentiates the VanEck and SolidX ETF and why it gives it a massive advantage over other ETFs that have been thus far rejected, here are the main points for you to better distinguish between the same:

1. Custody: Fund is physically backed and will hold BTC (Private Keys)

2. Designed for institutions not retail: Minimum $200K investment. This gives the SEC more confidence in protecting retail investors.

3. Backed by CBOE: to be traded on BZX Equities Exchange. CBOE has already pushed through Futures and has a long standing history with the SEC.

4. Regulatory oversight: the CBOE is a trusted and regulated exchange in the eyes of the SEC

5. Index will be traded on a OTC (over the counter) desk by Voice not Electronically: this reduces risk of manipulation and increases regulatory transparency.

6. Insured: ETF is insured by a syndicate of A-rated insurers. Again, more assurance and protection for investors.

7. Both VanEck and SolidX have filed for ETFs independently: together, they bring to the table more experience and lessons learned than any other applicant.

Well, there you have it. Other ETFs have had some of these components but nothing has come close to be as robust and comprehensive as this ETF.

The Delay is a sign of confidence, as. It demonstrates the SEC’s interest in continuing to do proper due diligence versus outright rejecting it.


Credit: Cointify, What’s On Crypto and 

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