The SEC has postponed its ruling on VanEck’s Bitcoin ETF again, and a new decision will now be made in November: VanEck filed an application for a BTC ETF with the US stock exchange supervisory authority in December, as we reported in our Bitcoin News.
The supervisory authority has meanwhile extended the review period. The SEC has postponed its decision and renewed its examination of VanEck’s Bitcoin Exchange Traded Fund application. The regulator said in an extension notice a day ago that it would respond to the matter. ETF approval or not. The New York-based asset management company was awaiting new SEC approval for its BTC ETF filing in December 2020. VanEck changed the motion in March, and the SEC has since been delayed in providing an answer:
“The committee is extending the deadline for approving or rejecting the proposed rule change by 60 days.”
A Bitcoin ETF is an investment vehicle that allows investors to buy stocks with the largest cryptocurrency by market capitalization. At the same time, other ETFs such as gold, real estate, or foreign currencies are very popular in the US.
The SEC has repeatedly said no to BTC and crypto ETFs as the regulator says it is concerned about price manipulation in the market.
Bitcoin ETFs and other ETFs are in great demand as they allow investors to invest millions in digital assets without worrying about buying and keeping cryptocurrencies safe. VanEck is one of 13 companies awaiting a response from the SEC upon approval, and critical players include One River Asset Management, Ark Invest, and SkyBridge Capital.
Bitcoin and Ethereum ETFs were hugely successful in Canada, breaking records in the first few days with millions of stocks traded, but interest in these products has waned since then. In the United States, regulators are playing it safe, with SEC chairman Gary Gensler hinting that the committee may not even be inclined to approve a BTC ETF, despite saying it would look into the SEC for ETFs pursues BTC futures as investment products. The CFTC regulates it. VanEck has registered a BTC futures ETF product that allows investors to buy stocks that are futures contracts.
The SEC may be more comfortable approving a BTC futures ETF as these contracts are traded on regulated markets like the Chicago Mercantile Exchange and Bitcoin ETF purists, but says ETF futures are inefficient and less desirable since they are less liquid.
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