Bitcoin ETF Postponed to February, But Could Take Years

Bitcoin ETF Postponed to February, But Could Take Years

The Security and Exchange Commision (SEC) has yet again postponed the Bitcoin Exchange Traded Fund (ETF). The SEC sent out the announcement on the 6th of December.

When will the SEC approve an ETF?

Investors have waited a long time for a bitcoin ETF. Due to the latest announcement, it is postponed once again, sounding like a broken record. The Security and Exchange Commision set the deadline to the 27th of February 2019. SEC is reviewing the ETF by the investment firm VanEck and blockchain company Solidx on the Chicago Board Options Exchange (CBOE). The organisation states:

“The Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.”

Under the Securities and Exchange Act, the commission must “issue an order approving or disapproving the proposed rule change not later than 180 days” after the date of publication of the notice.

If the commission deems it necessary, it may subsequently extend that period by 60 days. The Federal Register first published the proposed rule change on July 2, 2018. The maximum period of consideration falls 240 days later, on Feb. 27, 2019.

Even though the SEC set the new deadline for February, we might see farther delays.

An Exchange Traded Fund might be years away

Hester Pierce is a commissioner and the SEC. Her nickname is “Crypto mum” because she spoke for approval of a bitcoin ETF in September 2018. However, during the Digital Asset Investment Forum in Washington, she stated that an ETF could be years away.

“Definitely possible. It could be 20 years from now, or it could be tomorrow. Don’t hold your breath. The SEC took a long time to establish Finhub. It might take even longer to approve an exchange-traded product.”

She tries to persuade her colleagues to have an open mind when it comes to cryptocurrencies. It might take a while though. She says that the SEC sees a lot of institutional and retail interest which the SEC is dealing with currently. She adds:

“I think we need to encourage institutionalisation in crypto space. That’s not what the people in the space want. I think there are institutional folks who want to be in this space […]. The best way that we can offer retail investors to get into this space is through a place that’s more institutionalised.”

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