Bitcoin ETF received 84% negative feedback

The industry’s enthusiasm for a Bitcoin ETF (exchange-traded fund) appears to be waning — if you judge that by the dearth of new comment letters to the Securities and Exchange Commission in support of the investment vehicle. The SEC received just seven comment letters from the public in response to a solicitation for feedback it had requested in February 2019. Of those, six urged the agency to reject the application. (That’s around 84%.)

In September 2018, the bitcoin ETF application for the VanEck SolidX Bitcoin Trust received more than 1,400 comment letters — of which 99% were positive. But that enthusiasm has since dwindled, presumably due to the ongoing Crypto Winter. As CCN reported, the CBOE (Chicago Board Options Exchange) and VanEck resubmitted their bitcoin ETF application in late-January following a 35-day U.S. government shutdown.

The refiling came weeks after VanEck withdrew the application during the shutdown amid concerns that it could result in an automatic rejection. On March 14, SEC chairman Jay Clayton underscored that he’s not pro- or anti-crypto, but underscored that he has serious concerns about market manipulation. However, he says there definitely “may be a case where a bitcoin ETF could satisfy our rules.” Clayton also expressed optimism that cryptocurrencies and blockchain — the technology underpinning bitcoin — show great promise.

Bitcoin ETF: SEC Receives 84% Negative Feedback on Application, CCN, Mar 19