SEC Deadline for SolidX Bitcoin ETF Public Comments
The Securities and Exchange Commission's deadline for public comments on the SolidX Bitcoin ETF proposal passes.
On March 7, 2017, the Securities and Exchange Commission's deadline for public comments regarding the SolidX Bitcoin Trust ETF proposal passed, marking another step in the regulatory review process for Bitcoin exchange-traded funds. The SolidX proposal was similar to the Winklevoss ETF but backed by different sponsors and with some technical differences in structure and custody arrangements.
The public comment period had attracted submissions from Bitcoin enthusiasts supporting approval, skeptics raising concerns about market manipulation and custody risks, and various financial industry participants offering technical analysis of the proposal.
The SolidX ETF was one of several Bitcoin ETF proposals being reviewed by the SEC, and its progress was closely watched as an alternative path to the Winklevoss effort. Some observers believed that the SEC might be more comfortable approving the SolidX structure, or that approval of one ETF might open the door for others to follow quickly.
However, the fundamental concerns facing all Bitcoin ETF proposals were similar: the lack of comprehensive surveillance of Bitcoin spot markets, the global and fragmented nature of Bitcoin trading, custody security challenges, and questions about price discovery in largely unregulated markets.The closing of the public comment period meant the SEC staff would now compile and analyze the feedback as part of their recommendation to the commissioners who would make the final decision on whether to approve the SolidX ETF.