Many open questions: The SEC has presented interested investors with a list of arguments put forward by the applicants as well as general questions on the subject, which they can work through in their next comments.
Is the Bitcoin ETF really not manipulable?
The CBOE argues that the VanEck SolidX Bitcoin Trust is better protected against manipulation than other physically covered exchange products. This is partly due to the global fragmentation of the Bitcoin markets and the continuity of Bitcoin trading. In addition, its low transaction speed makes the Bitcoin less susceptible to manipulation attempts.
2nd OTC and Arbitrage. Next, the SEC cites an argument from the Bitcoin ETF sponsor SolidX. The sponsor argues that over-the-counter (OTC) trading, which is used to determine prices, is more suitable than the index of one (or more) exchanges.
The SEC also requires information on the number of traders on OTC bit-coin markets, their liquidity and whether sufficient arbitrage has been provided.
IIV and NAV. Can the dissemination of information via the fund’s website contribute to making manipulation attempts less likely? What about intra-day indicative value (IIV) and net asset value (NAV)? manipulation: general Fourth, the SEC asks the commentators for their general opinion on the susceptibility of the proposed Bitcoin ETF to manipulation.
Manipulation of Bitcoin futures
The SEC asks investors and interested parties to comment on the general resistance of Bitcoin future markets to manipulation in the fifth item of its list.
The Opaque Index
The Commission wants to know from investors how they feel about the fact that the calculation of the index used (“MVBTCO”) is carried out using a private method and is based on the quotes of non-identified market makers? And: Does the time of the daily price determination, 16:00 EST, make the Bitcoin ETF more susceptible to manipulation?