The U.S. Securities and Exchange Commission (SEC) has delayed their decision on the commodity-backed Bitcoin ETF. The final determination is pushed ahead, as expected.
The Waiting Begins
In a notice dated August 7, the SEC announced they are pushing back the decision on what would be the very first regulatory approved Bitcoin[coin_price] exchange-traded fund (ETF) in the U.S.
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.
Earlier this month, legal expert Jake Chervinsky explained that the SEC has the regulatory freedom to push back the decision on the CBOE-backed Bitcoin ETF in early March 2019. Given the latest notice, it seems this is where we are headed. That’s not the first time the SEC used its statutory power to delay Bitcoin ETFs. In late July, the Commission postponed the decision on the Direxion Investments filing for September 2018.
A Focal Point
The CBOE-backed VanEck/SolidX Bitcoin ETF proposal was filed in June when the prominent companies joined forces. Bitcoinist outlined a few reasons for which CBOE Global Markets might finally get its Bitcoin ETF approval.
At the same time, the SEC has received an influx of comments on behalf of cryptocurrency enthusiasts on the matter, where the overwhelming majority reflect an entirely positive outlook. In fact, the aforementioned notice reads that:
As of August 6, 2018, the Commission has received more than 1,300 comments on the proposed rule change.
Despite the interest towards an ETF-like product, the Commission declined the proposed rule change to list and trade shares of the Winklevoss Bitcoin Trust on the Bats BZX Exchange in late July. However, SEC commissioner Hester M. Price voiced a formal disagreement, outlining numerous flaws in the ruling. She argued that the proposed rule change did, in fact, abide by the statutory standards.
What do you think of the SEC’s move to delay its decision on the VanEck/Solidx Bitcoin ETF? Do you think we will have to wait until 2019? Don’t hesitate to let us know in the comments below!
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