The U.S. Securities and Exchange Commission (SEC) has again postponed making a decision on the VanEck, SolidX, and Cboe joint proposal bitcoin exchange-traded fund (ETF) proposal.
The proposal was filed in January and was delayed in March. In a new document filed Monday, the SEC stated that it was in the process of establishing proceedings on whether to approve or disapprove a proposed rule change that would allow the VanEck SolidX Bitcoin Trust to issue and list its shares on the New York Stock Exchange (NYSE).
Currently, the commission is seeking more comments from public on the proposed ETF as they have received only 25 comments so far. The deadline to submit comments is due 21 days from when the order is published and rebuttal to the comments are due 35 days after the publication.
Following this, the new deadline for the SEC to make its decision has been set up for August 19th , and it could be delayed one more time for a final deadline of October 18th, according to attorney Jake Chervinsky.
Originally, the bitcoin ETF proposal was first filed with the SEC last year, however due to the U.S. government shutdown it was withdrawn in January this year. VanEck/SolidX refiled the proposal later that month, only to receive a delay notice for March 29th. Similarly happened to the proposal filed by Bitwise Asset Management with NYSE Arca.
The commission has postponed making any decision on the two proposals so far this year, with the latest delay on Bitwise’s proposal coming on May 14th. Following this news, the VanEck/SolidX proposal joins the long list of failed attempts to get an ETF approved by the SEC.
Meanwhile, the commission has issued several extensions and rejections on ETF proposals, citing concerns that the proposals did not meet and satisfy SEC standards to prevent fraud, market manipulation, financial crime, liquidity amongst others.
Following today’s announcement, the SEC has reiterated these concerns:
“The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be “designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,” and “to protect investors and the public interest.”
The SEC’s repeated delays in sanctioning a bitcoin ETF may reflect its lack of confidence in the maturity of the crypto market. As such, the regulator has turned down at least 10 ETF proposals to date and it has yet to approve one.
In response to the repeated delays, VanEck digital asset strategy director Gabor Gurbacs has stated that “we continue the hard work towards better-regulated, safer and more liquid digital assets markets. Bitcoin is too big to ignore.”