Bitcoin ETF: SEC Receives 84% Negative Feedback On Application

It seems like the enthusiasm for a Bitcoin ETF hasn’t decreased – and such exchange traded fund is still waning. In the latest crypto news, we are seeing a new letter in a series of ones sent to the Securities and Exchange Commission in support of the investment vehicle.

In fact, the SEC received just seven comment letters from the public that come as a response to a solicitation for feedback that it had requested in February 2019. Of these seven, six urged the Securities and Exchange Commission (SEC) to reject the Bitcoin ETF application – which is around 84% in terms of percents.

According to the commenter named Dina Pinto:

“It is in my opinion that Bitcoin to date has no solid ground on which to base a serious product such as an ETF on. It is volatile, manipulated by the very few and has no real use case.”

“I can see a lot of people getting hurt both financially and in other ways by you accepting this proposal. It is in my humble opinion that this proposal be rejected.”

Another commenter named D. Darnwell sent a letter in which he wrote:

“I would like to voice my disapproval of this Bitcoin ETP and would ask the SEC to take a much longer time horizon to take a ‘watch and wait approach’ to see if Bitcoin is worthy of becoming a financial product with all the positives and draw-downs it entails.”

“Decline this ETP without hesitation.”

However, one Bitcoin ETF proponent named Sami Santos was confident, stating:

“Regarding the argument of the SEC that has not yet approved an ETF because of manipulation and mainly appreciates the protection of investors is contradictory, because without an investment fund, the investor is susceptible to buy bitcoins in deregulated exchanges and lose their investments (bitcoins).

VanEck already offers insurance to cover possible losses and as such, the investor will show interest in investing in an ETF fund. So I see no reason not to approve VanEck ETF and Bitwise.”

To remind you, the September (2018) Bitcoin ETF application for VanEck SolidX Bitcoin Trust received more than 1,400 comment letters – of which 99% were positive. However, because of the crypto winter, this enthusiasm has dwindled.

Currently, no one knows if this Bitcoin ETF will be withdrawn. If that’s the case, the 240-day deadline clock will reset itself and be set once a new filing is submitted.