SEC Postpones Decision on VanEck Bitcoin ETF
The U.S Securities and Exchange Commission (SEC) has deferred its decision regarding the proposed VanEck/SolidX bitcoin exchange-traded fund (ETF).
The agency announced the move via an official SEC filing published on May 20.
The Commission has said that it is taking this step to constitute further proceedings in order to gather more information and get public opinion. Thereafter, the agency is expected to determine whether to approve or reject the proposed rule change.
The application seeks to have shares of the VanEck SolidX Bitcoin Trust issued and listed for trading.
The securities regulator has said that the public has 21 days in which to submit their views and comments. The Commission will then proceed to review the comments and give rebuttals within 35 days. Both timeframes run from the time the SEC publishes this order in the Federal Register.
The delay means that the Commission is now expected to make a decision on the VanEck ETF by August 19, with the new deadline being an extension of 90 days allowed by law.
Attorney Jake Chervinsky has noted that the regulator may also seek to extend that timeline one more time by another 60 days. Such an eventuality would give the agency up to October 18 as the final deadline upon which the regulator must make a decision.
Cboe BZX first filed for approval to list the VanEck/SolidX ETF last year but pulled it earlier this year just days to the SEC’s final decision on the proposed rule change. At the time, the withdrawal of the ETF application was necessitated by the long partial U.S. government shutdown.
The Cboe re-filed the VanEck proposal late January; a few days after Bitwise Asset Management and the NYSE Arca had filed for approval to list the Bitwise Bitcoin ETF.
On May 14, the SEC announced that it was delaying its decision on the Bitwise proposal. The move to delay the two bitcoin proposals means that the SEC is yet to approve any of the ETF proposals that have been filed so far.
The regulator has rejected a number of proposals in the past, among which was an application by Gemini owners Cameron and Tyler Winklevoss.
The U.S. market continues to wait for its first ETF, even as the SEC has listed several concerns it says the crypto market needs to address. These concerns include liquidity issues, market manipulation, and financial crime among others.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.