Bitcoin ETF is far away? SEC again postpones decision on three applications

According to Cointelegraph's August 13 report, the US Securities and Exchange Commission (SEC) will postpone the decision on three Bitcoin exchange-traded funds (ETFs) to go online.

30693285417_d46e93de5d_b (Source: flickr )

According to a document published on August 12, the US Securities and Exchange Commission postponed the formal decision to amend the NYSE Arca and CBOE BZX exchanges. The asset management companies that submitted online ETF products to the two exchanges were VanEck SolidX, Bitwise Asset Management and Wilshire Phoenix.

According to the announcement, the US Securities and Exchange Commission postponed VanEck's online decision until October 18th, and Bitwise's decision was postponed until October 13. Wilshire Phoenix's decision was postponed until September 29.

The US Securities and Exchange Commission said:

The Committee believes that there should be a longer period of time to consider whether to approve the proposed rule changes above.

An ETF is a type of security that tracks a basket of assets that are proportionally reflected in the fund's stock. It is seen by many as a big step toward the massive adoption of digital assets.

Van Eck and Bitwise's ETF applications were submitted in January and February this year. The Wilshire Phoenix application was published in the Federal Register on July 1, 2019.

The US Securities Act gives the US Securities and Exchange Commission the power to defer decisions on proposed financial products in order to gather information or to further investigate changes to the rules that allow listing.

Although a number of companies have proposed bitcoin ETFs in recent years, the regulator has not approved any such ETFs on the grounds that there are concerns about market manipulation, market surveillance, and possible divergence with futures trading.

Bitwise tried to alleviate these concerns. It issued several reports indicating that bitcoin's actual market size is smaller, regulation is stricter, and regulation is much better than expected. In addition, it is also related to the Chicago Mercantile Exchange in terms of transactions. The futures market of (CME) is closely linked.

The company insists that the bitcoin market is “extremely efficient” once fraudulent transactions and other false transaction data are removed.

precedent

This is the SEC's decision to postpone the Bitcoin ETF again. It delayed the ETF decision on VanEck and Bitwise in March and May this year.

In May, the US Securities and Exchange Commission decided to open 14 questions in order to gather more information and opinions about the VanEck proposal.

In December last year, Heter Pierce of the US Securities and Exchange Commission told investors not to over-expect the launch of the Bitcoin ETF. She said:

The Bitcoin ETF may go online 20 years later or tomorrow. It took the US Securities and Exchange Commission a long time to establish Finhub (a division that supports financial technology innovation). Therefore, it may take longer to approve an exchange-traded product.

In June of this year, Jay Clayton, chairman of the US Securities and Exchange Commission, said that the SEC must consider cryptocurrency services to be sufficiently secure and must be satisfied with the protection measures against market manipulation in order to launch an ETF.