Thursday, January 23, 2020

U.S. SEC Postpones the Approval of Two Bitcoin ETFs

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Grace Joseph
Freelance Writer, Blogger, and Crypto Enthusiast. Studied Computer Science in University and Undergoing a Masters Degree Programme in Computer Engineering Contact@ reigngracia@gmail.com

Despite a number of events that should’ve been enough to negatively impact on the price of Bitcoin and other virtual assets, it isn’t the case. Its performance over the weekend and today has been remarkable and it is currently trading around $4,152. One of such events, on the other hand, is the SEC’s postponement of its ruling on the launch of two proposed Bitcoin ETFs.

U.S. SEC Postpones its Ruling on Bitcoin ETFs Application

The U.S. Securities and Exchange Commission on Friday, March 29 postponed its decision on whether to accept or reject the application of two Bitcoin Exchange Traded Funds (ETFs). The latter concerns the launch of a Bitcoin ETF by Bitwise Asset Management, a cryptocurrency index platform and VanEck, an investment management firm.

Accordingly, the new dates that have been fixed are May 16 and May 19 where both ETFs will be decided upon respectively. Given that this is not the first time the SEC has postponed its plans, there’s no saying if they won’t do same in May. The regulator also stated that:

The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change.

Bitwise Filed Application in January

Bitwise’s proposed ETF is in collaboration with NYSE Arca. They filed their application in January this year and on February 15, it was published in the Federal Register. Therefore, it has exceeded the 45-days wait period that is required before a decision is made. Given that the SEC has 240 days before they can settle on a final decision, this only makes people uncertain if a decision will be made in May.

VanEck, on the other hand, is working alongside SolidX and Cboe BZX Exchange. They had first filed an application last year, but in January, it was withdrawn. It was blamed on the U.S. government shutdown due to Donald Trump’s need for a security border with Mexico. The application was resubmitted in late January and filed on February 20.

News About SEC’s Postponement Fails to Shake the Crypto Market

Despite the news, it was not enough to shake the cryptocurrency market as it had in the past. At this point it can be assumed that investors have gone past the SEC’s decision of whether or not it decides to postpone its ruling. Nonetheless, it is believed that if these Bitcoin ETF’s are approved, they can attract more investors into the market.

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