Bitcoin

Bitcoin ETF delayed by SEC, Postponed to late-February

The Security and Exchange Commision (SEC) has postponed the Bitcoin Exchange Traded Fund (ETF) to the late February. As per the official announcement by the SEC on the 6th December, the new deadline for the SEC decision is set to be February 27, 2019.

Investors have waited a long time for a bitcoin ETF. Due to the latest announcement, it is postponed once again, sounding like a broken record.  The Bitcoin ETF is proposed by a New-York based investment firm VanEck and blockchain company SolidX on Chicago Board Options Exchange (CBOE).

“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,” stated the document.

Bitcoin ETF delayed by SEC, Postponed to late-February

Also states:

“The Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.”

Under the Securities and Exchange Act, the commission must “issue an order approving or disapproving the proposed rule change not later than 180 days” after the date of publication of the notice.

According to this method, the maximum period of consideration is 240 days later i.e. on February 27, 2019, from the proposal of the rule change, published in the Federal Register on July 2, 2018.

The Bitcoin ETF ordeal has been going on since June when the two firms, VanEck and SolidX first approached the SEC to list the Bitcoin ETF. The regulatory body, in August, delayed its decision to late-September. After asking for further comments regarding the decision, the commission set a deadline for comments about proposed changes to the ETFs in October.

Following a meeting with representatives from VanEck, SolidX and the CBOE, the SEC published a memorandum of the same last week, which spelled out the precedent for the Bitcoin ETF based on actual commodities like gold and crude oil.

Hester Pierce is a commissioner and the SEC. Her nickname is “Crypto mum” because she spoke for approval of a bitcoin ETF in September 2018.

She said:

“I think we need to encourage institutionalisation in crypto space. That’s not what the people in the space want. I think there are institutional folks who want to be in this space […]. The best way that we can offer retail investors to get into this space is through a place that’s more institutionalised.”

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