SEC Again Postponed Decision on Bitcoin ETF Rule Change

Cryptoinformers || AUGUST 13, 2019

The United States Securities and Exchange Commission (SEC) has again delayed its decision on three Bitcoin (BTC) exchange-traded fund (ETF) proposals, according to documents published on Aug. 12.

Per the publication, the SEC has put off a formal decision on proposed rules changes by NYSE Arca and Cboe BZX Exchange for three Bitcoin ETFs: by asset managers VanEck SolidX, Bitwise Asset Management, and Wilshire Phoenix.

The SEC delayed the  decision of  listings in different dates. Like for VanEck, it ways delayed to Oct. 18, while decision on Wilshire Phoenix’s United States Bitcoin and Treasury Investment Trust has been postponed until Sept. 29. Bitwise’s listing on NYSE Arca will then be delayed to Oct. 13. The SEC stated in each case that:

“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.”

ETFs are a type of security that tracks a basket of assets proportionately represented in the fund’s shares. They are seen by many as a step forward for the mass adoption of digital assets.

The VanEck proposal was filed in January, while Bitwise’s current application was filed in February. The Wilshire Phoenix proposal was published in the Federal Register on July 1, 2019.

Although Securities laws give the SEC the right to postpone its decision on proposed financial products in order to gather information or further deliberate on a rule change that would allow the listing, but this is not the first time SEC is delaying in making its decisons. The SEC had previously delayed its decision on VanEck and Bitwise’s ETF applications in March, and again in May.

In May's decision, the SEC decided to publish 14 questions, available to the public, in order to gather more information and opinions about VanEck’s proposal.

Last December, SEC “Crytpo Mom” Hester Pierce told investors not to hold their breath when it come to waiting for a Bitcoin ETF:

“Definitely possible 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 stated.

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