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The U.S. SEC Lingers Its Decision On Bitcoin ETF Applications

BFSI

The_U.S.-SEC-Lingers-Its-Decision-On-Bitcoin-ETF-Applications The U.S. SEC Lingers Its Decision On Bitcoin ETF ApplicationsThe U.S. Securities and Exchange Commission (SEC) has reportedly delayed its decision on a rule change to the Securities Act from Bitwise and VanEck that would enable the listing of Bitcoin (BTC) Exchange-Traded Funds (ETF).

Bitwise, a data management and technology solutions platform, filed its application with NYSE Arca in mid-February under the condition that it would reach a decision in 45 days. However, should the commission feel the need to extend that period; it’s permitted to extend the review period to 90 days. As the report noted on the latest decision, the SEC must come to a result on whether to approve the rule change by 16th May this year. In January, NYSE Arca and Bitwise initially divulged plans to release Bitcoin ETFs, wherein NYSE Arca ostensibly filed, in 2018, for permission to launch several Bitcoin-related ETFs.  The exchange aimed to release 5 separate ETFs linked to both bull and bear futures contracts on NYSE Arca. ETFs are securities which track a plethora of assets proportionately represented in the fund’s shares and are seen by some as a potential step forward for the mass adoption of Cryptocurrencies.

The US SEC has also extended its decision on the VanEck/CBOE Bitcoin ETF. The SEC, in the same conditions, has extended its initial 45-day review period to 90 days, which new deadline for considering the ETF falls on May 21. The application from VanEck and Bitwise has experienced several delays, as the SEC repelled its decision on multiple occasions. The firms first filed with the SEC to list a Bitcoin-based ETF on 6th June 2018. Later in August, the commission delayed its decision on listing the ETF until September 30, according to the report.