The United States Securities and Exchange Commision (SEC) is again looking for opinions and comments on a potential bitcoin-based exchange-traded fund (ETF).
The SEC made the call for comments on a proposed ETF by Cboe to begin listing and trading the SolidX Bitcoin Shares. The ETF was first proposed by the VanEck SolidX Bitcoin Trust, records published Tuesday reveal.
The document notes the trust will invest in bitcoin only, and the trust’s assets will consist of bitcoin held by the trust utilizing what they say is a secure process.
The filing from Cboe indicates the trust will invest only in bitcoin and shares in the ETF will reflect bitcoin’s price. While the ETF’s operators will buy and sell bitcoin as needed, the document makes it clear that the trust will not be actively managed.
The SEC is asking for comments and opinions the proposed rule change from interested people.
As previous reports from CoinDesk reveal, this ETF was created by the partnership between investment firm VanEck and blockchain startup SolidX. The filing is VanEck’s third such attempt at creating a bitcoin investment vehicle.
Van Eck’s CEO, Jan van Eck says he believes that bitcoin is a legitimate investment option that makes sense for many investor’s portfolios, despite many regulatory issues they went up against before.
Van Eck elaborates on this further, saying:
“We believe that collectively we will build something that may be better than other constructs currently making their way through the regulatory process. A properly constructed physically-backed bitcoin ETF will be designed to provide exposure to the price of bitcoin, and an insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin.”
Several firms made attempts to list bitcoin ETFs in the past. However, the SEC forced withdrawals in each case. The financial regulator states it’s concern with bitcoin’s issues with volatility and liquidity, among others.