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Securities and Exchange Commission Delays Bitcoin ETF Decisions

The United States SEC (Securities and Exchange Commission) has just delayed its decisions on three proposed Bitcoin ETFs. So-called ETFs, or exchange-traded funds, have long been seen a tool for facilitating large-scale institutional crypto investments.

SEC postpones Bitcoin ETF decisions (again)

Specifically, this news came in SEC documents published on August 12th. In it, the SEC announces that they have postponed their decision on three Bitcoin ETF rule changes. These three proposed Bitcoin ETFs come from the asset managers Wilshire Phoenix, Bitwise Asset Management and VanEck Solid.

Moreover, the three ETFs have not been uniformly postponed. Rather, the decision for VanEck’s listing has been pushed back to October 18th. Furthermore, Bitwise’s potential listing on NYSE Arca will be delayed to October 13th. 

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In addition to these, the decision for Wilshire Phoenix’s proposed Bitcoin ETF will be pushed back to September 29th. This is not the first time that the SEC has gone on to postpone their decision on Bitcoin ETFs. The SEC motivated the delay with this statement:

“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change.”

Why is a Bitcoin ETF so important?

Put simply, exchange-traded funds are often described as a “basket” of a certain asset. As such, this security can be purchased when holding the actual asset is either complicated, unpractical or otherwise undesirable.

For example, gold has often been sold through gold ETFs in the past. The fact that Bitcoin is often referred to as “digital gold” is just one of the reasons as to why this might be a good fit. Moreover, Bitcoin exchange-traded funds would make it dramatically easier for investors to buy and sell Bitcoin using existing systems.

The ETF proposal by VanEck was filed as far back as January of this year. Bitwise’s current application has been waiting since February, and the Wilshire Phoenix proposal was shared through the Federal Register on July 1st. 

It should be noted that the SEC has previously delayed this decision multiple times. This shines a light on the apparent unwillingness by the Securities and Exchange Commission to actually green-light a cryptocurrency exchange-traded fund. However, it remains to be seen whether this delay will allow the commission to become convinced.