On 31 December, VanEck filed a new application for the Bitcoin ETF. According to SolidX, VanEck portrayed to the world that they were still cooperating while working on the new application.
Blockchain firm SolidX Partners Inc has sued its former partner, VanEck Associates Corp, a global investment management firm for suspiciously terminating their contract and filing for a Bitcoin ETF proposal which is a plagiarized version of their work. It is suspected that VanEck probably worked against the interest of its former partner even when they were still in business.
SolidX and VanEck formed a strong partnership in two years to work towards their common interest in the Bitcoin Exchange Traded Fund ecosystem. SolidX is known for its effort in working to ensure that the Bitcoin ETF is brought to the market, and this goes as far back as 2015.
VanEck on the other hand is known for being the first to file for the Bitcoin ETF in 2017. In 2018, the two joined hands to utilize the experience of VanEck in issuing financial products and the enviable experience of SolidX in the cryptocurrency industry. They then issued a joint Bitcoin EFT application.
In September 2019, the joint application for a Bitcoin ETF was withdrawn and in August 2020, they terminated their partnership agreement. SolidX believes that the situation surrounding the termination of their partnership is malicious, and the recent move of VanEck hits the nail right on the head.
On 31 December, VanEck filed a new application for the Bitcoin ETF. According to SolidX, VanEck portrayed to the world that they were still “married” to SolidX while working on the new application.
Before then, VanEck came out with a Bitcoin Exchange-Traded Note in November, listed on the Deutsche Börse Xetra market. SolidX believes that the brand and credibility of VanEck as an ETF issuer speaks volumes of why they had to join hands with them since they had little or no experience in Bitcoin.
The development executed by VanEck according to the blockchain firm was fishy. The plaintiff also alleged that deciding to come out with a product that directly competes a few weeks after splitting up could also mean they worked against the interest of SolidX while they were still partners.
“Using SolidX’s work and work product to compete with it is bad enough, but the registration statement VanEck filed would be called plagiarism in any other context: the structure of VanEck’s proposed Bitcoin ETF is substantively identical, or virtually so, to the structure for which SolidX sought SEC approval, ”said the blockchain firm.
Securing the approval of the Bitcoin ETF in the US is a very difficult task as it is argued that the market size for Bitcoin Futures is insignificant. Also, it is said that the fraudulent and manipulative acts and practices in such a market are a serious cause for concern. Most of the earlier Bitcoin ETF applications were thrown out with SolidX and VanEck seeing their separate and joint applications not convincing enough to get the regulatory green light.
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