Crypto Really Wants a Bitcoin ETF

The crypto universe has spoken: they want a bitcoin ETF and they want it now.

As CoinDesk previously reported, the Securities and Exchange Commission sought comments earlier this summer on the latest effort to get an exchange-traded fund tied to bitcoin approved and listed.

That comments period is now closed, and the SEC is ostensibly going over the input it received - but what the agency ultimately decides is anyone's guess.

These comments are just a snippet of the 250 that have been made in light of a proposed rule change that would, if approved, give permission to Cboe and blockchain technology firm SolidX to launch a regulated bitcoin ETF. Dubbed the VanEck SolidX Bitcoin Trust, the proposed ETF would be priced from a bundle of crypto-assets that fluctuates in value primarily in accordance with over-the-counter trading desks, as opposed to online cryptocurrency exchanges.

SolidX would offer insurance for investors covering loss or theft of bitcoins held by the trust, differentiating it from the most recent bid for a regulated crypto ETF led by the Winklevoss Bitcoin Trust.

Not all comments were supportive with some seeing the potential approval of a bitcoin ETF regardless of the issuing company as a dangerous precedent and perhaps possibly "The biggest mistake since the creation of synthetic-CDOs.".

The majority of positive comments overwhelmingly drowned out the concern.

Supporters of the proposed rule change argued that a bitcoin ETF would make the crypto markets a safer and more trustworthy space for investors to deal in.

While the SEC likely expected the onslaught of several different opinions to answer their open call for "Written data, views, and arguments," they may not have been prepared for the fervour at which the crypto community would capitalize on this opportunity to explain to government officials just how badly they want that bitcoin ETF approved.

CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.