The United States Securities and Exchange Commission (SEC) announced that it delays its decision on three Bitcoin (BTC) exchange-traded fund (ETF) proposals.
The ETFs, proposed earlier in the year came from Bitwise Asset Management, VanEck/SolidX and Wilshire Phoenix, and filed with exchanges NYSE Arca and Cboe BZX. The applicants are hopeful that there will be some progress on the ETF front hoping to become the first asset manager to offer a regulated investment vehicle based on Bitcoin.
The SEC decision for listing VanEck has been delayed to October 18, while Bitwise’s proposal on NYSE Arca will know its fate on October 13. The Wilshire Phoenix’s United States Bitcoin and Treasury Investment Trust will be the most recent decision announcement on September 29. The SEC shared the same statement for each of them:
“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.”
Exchange traded funds (ETF) are a type of security that tracks a basket of assets proportionately represented in the fund’s shares. The SEC approval is highly anticipated by the community, as this would make Bitcoin exposure for institutional investors much more accessible.
The VanEck proposal was filed in January, while Bitwise’s current application was filed in February. The Wilshire Phoenix proposal was published on July 1, 2019. Attempts for Bitcoin ETF approvals have been consistently rebuffed by the SEC over the last couple of years, the main reason being fear of market manipulation that can’t be monitored by the agency.
Today’s news marks the latest in a series of delays on a Bitcoin ETF. The SEC had previously delayed its decision on VanEck and Bitwise’s ETF applications in March, and again in May.
Following the May decision, the SEC decided to publish a set of questions, available to the public, in order to gather more information and opinions about VanEck’s proposal.
The SEC has the right to postpone its decision (usually up to 3 instances) on proposed financial products in order to gather information or further analyze a rule change that would allow the listing.