The US Securities and Exchange Commission has, once again, delayed its decision on a potential cryptocurrency-based exchange-traded fund. This comes as the latest in a series of delays in relation to crypto ETFs.
A decision on the VanEck Bitcoin ETF has been a long time coming
The Securities and Exchange Commission (SEC) made an official filing on May 20th, acknowledging the delayed decision. Furthermore, the SEC announced that it would add a 35 day period in order to receive more information and opinions on the proposal.
The SEC noted as much in a comment on the matter, noting that it needed more input to reach a conclusion:
”Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.”
The proposal for this ETF has had a rocky history. It was first filed by the Chicago Board Options Exchange (CBOE) last year. However, the CBOE withdrew its requested rule change earlier this year, during the January shutdown of the US government. Nonetheless, the CBOE later reapplied once the government shutdown was over.
Specifically, this latest delayed decision is in relation to the VanEck Bitcoin ETF. The VanEck Bitcoin ETF is one of the most highly anticipated potential crypto ETFs, so the delay comes as somewhat of a letdown. With that said, however, the delay did not come as a total surprise.
The SEC delayed a decision on the Bitwise Asset Management Bitcoin ETF last week
Rather, industry observers have been anticipating yet another delay in the SEC’s decision-making process. Just last week, the SEC decided to postpone its decision regarding another crypto ETF: a Bitcoin ETF from Bitwise Asset Management.
At the time, the SEC noted that it was exercising its right to impose an extended deadline of 45 days. Nevertheless, the SEC did not comment on the VanEck Bitcoin ETF at the time. This further spurred on rumors that the crypto ETF might actually be about to be approved.
However, it is now clear that the SEC will not make any sort of official announcement on the ETF’s future today. What’s more, the market is also not sure whether or not a crypto ETF is even something to look forward to. With that said, most do expect such a fund to lead to further price gains.
An institutional cryptocurrency ETF might open up the institutional investment floodgates – but it could also betray cryptocurrencies’ decentralized nature. As such, the potential introduction of a cryptocurrency ETF is a more contentious issue than it might initially seem.
With that being said, the SEC has now listed 14 open questions to the public in order to help with the VanEck Bitcoin ETF decision. The questions are focused on protecting investors and public interests, which can give an inkling as to the SEC’s concerns.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.