CBOE’s VanEck and SolidX Bitcoin ETF Approval Delayed by SEC

The United States Securities and Exchange Commission (SEC) has delayed its decision on a proposed Bitcoin ETF, with the commission set to make its decision next month.

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The United States Securities and Exchange Commission (SEC) has delayed its decision on a proposed Bitcoin ETF, with the commission set to make its decision next month. This was contained in an order published on August 7.

Regulators need more time

Regulators at the agency noted that they were giving themselves more time to decide on whether to approve the Bitcoin ETF.

This decision comes barely three weeks after the agency postponed its decision on five other Bitcoin ETF proposals. In its statement, SEC announced that it will be delaying its decision to approve or reject SolidX Bitcoin Shares ETF until late September.

However, CBOE president remains very positive on its Bitcoin ETF applications and explains that the decision was to be expected.

This decision doesn’t come as a surprise to many in the cryptocurrency world due to similar past decisions taken by the commission.

SEC wrote “Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act, designates September 30, 2018, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change (File No. SR-CboeBZX-2018-040).”

The proposal which was submitted by the Chicago Board Options Exchange (CBOE) back in June seeks the agency’s permission to list Bitcoin ETF.

If the proposal is approved, the Bitcoin ETF would be listed on CBOE’s BZX exchange in cooperation, with legacy investment management company VanEck and crypto startup SolidX coming on as partners.

VanEck had earlier submitted a Bitcoin ETF proposal to SEC last year but was rejected, with this one now their second attempt. The proposal by the companies did receive a lot of support from the cryptocurrency world days following its submission.

BZX exchange had also made an earlier attempt to secure a Bitcoin ETF listing in a joint filing with the Winklevoss twins.

The commission, however, rejected the proposal following its prolonged deliberation for Direxion Asset Management’s five filings.

SEC revealed that it rejected the proposal because BZX hasn’t met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6(b)(5).

Commissioner Hester Peirce against SEC decision

One commissioner though has stood out from the rest. Hester Peirce who has been in support of the Bitcoin ETF believes that if approved, it could invite more mature regulation, both from the private and public sectors.

According to her, the decision to reject the Winklevoss Bitcoin ETF proposal is a disservice to both investors and innovators.

She further noted that the SEC’s decision misconstrues the commission’s purpose to protect investors as a method to decide what is and isn’t a legitimate investment.

The Bitcoin price which was trading around $7,000 prior to the release by SEC plummeted more than $500 to trade above $6,500.

As usual, the drop in Bitcoin price had a ripple effect, with the entire cryptocurrency market losing roughly $25 billion hours after the news broke out.

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