SEC Delayed Ruling On VanEck’s Bitcoin ETF Again

The SEC delayed ruling on VanEck’s Bitcoin ETF again and now a new decision will is made in November. VanEck applied to the US Securities and Exchange Commission for a BTC ETF back in December as we reported in our Bitcoin news.

The regulatory body has since then extended the deadline review. The SEC delayed ruling and extended its review of VanEck’s Bitcoin exchange-traded fund app once again and the regulatory body said a day ago in an extension notice that it will give an answer on whether or not it will approve the ETF. New York-based asset management company is awaiting new approval from the SEC from its December 2020 BTC ETF Application. VanEck made an amendment to the app in March and since then the SEC delayed giving it an answer:

“The Commission is extending the time period for approving or disapproving the proposed rule change for an additional 60 days.”

A Bitcoin ETF is an investment tool that allows investors to buy shares that represent the biggest crypto by market cap while other ETFs like gold, real estate, or foreign currency are very popular in the US. The SEC has repeatedly said no to BTC and crypto ETFs as the regulator said that it is concerned over price manipulation in the market. There’s a huge demand for a bitcoin ETF and other ETFs because they allow investors to invest in teh digital asset without having to worry about buying and securely storing the crypto. VanEck is one of the 13 companies that are awaiting an answer from the SEC on approval and the major players include One River Asset Management, Ark Invest, and SkyBridge capital.

Bitcoin and Ethereum ETFs were a huge success in Canada and smashed records with teh amount of shares traded in their first few days but since then, the interest in the products calmed down. In the US, regulatory bodies are playing it safe as SEC Chair Gary Gensler hinted that the commission could not even be inclined to approve a BTC ETF though he said that he looked ahead to the SEC review of ETFs that track BTC futures that are investment products regulated by the CFTC. VanEck applied for a BTC futures ETF product and it will allow investors to buy shares that represent futures contracts

The SEC could feel more comfortable approving a BTC futures ETF since these contracts trade on regulated markets like the Chicago Mercantile Exchange and bitcoin ETF purists but say that a futures ETF would be inefficient and less desirable because they are less liquid.

Source: https://www.dcforecasts.com/bitcoin-news/sec-delayed-ruling-on-vanecks-bitcoin-etf-again/