The race to capture the lion’s share of the ETF market is heating up with recent developments in the regulatory space. The Winklevoss ETF, once to be listed on NASDAQ, then later to on BATS, has just had a regulatory setback. SolidX is stepping up their game to provide a competitive foothold.
Last week the SEC decided to extend its timeframe to make a decision on whether or not to accept a rule change that COIN, the Winklevoss proposed ETF, would be allowed to list and trade on BATS. The new deadline for the SEC is now October 12, however they could again opt to delay a further 150 days before a formal decision is made.
This delay is just one of many setbacks across the three years the Winklevii have spent on a listing. The timing couldn’t be worse.
During this past initial 45 day period, the SEC opened up a comments section allowing anyone to express a formal opinion on COIN. None of these called for COIN to be refused, however the major theme was insurance, the controversial crypto keyword of choice in 2016.
This could prove to be a make-it or break-it for COIN given the two most publicized events in the cryptospace this year have been record-setting hacks (DAO and Bitfinex). Serious investors will not want to hold long-term positions in any ETF that does not provide protection due to a hack. Their risk managements teams simply won’t accept it.
Perhaps this is why the SolidX ETF has, coincidentally, just filed a new S-1 statement with the SEC announcing an insurance policy covering losses of Bitcoin up to a maximum of $10m.
This may become a new standard for professional companies wishing to claw their way into an untapped market of professional investors. The first insured Bitcoin ETF that lists in on a non-OTC exchange could launch Bitcoin back on the right track.