VanEck one of the United States oldest investment management firm is in a constant struggle to get its VanEck/SolidX Bitcoin(BTC) ETF proposal approved. VanEck and SolidX Bitcoin ETF proposal is widely regarded to be the most likely for approval due to some of its exceptional features like physical backing that means investors can actually hold the bitcoin. However, The U.S. Securities and Exchange Commission (SEC) is unable to approve its implementation and delayed again for the coming months. The long-time pending approval is yet another time postponed for the decision. The SEC informed about the delay in decision through a new document published on May 20.
In the U.S, as a rule, all Bitcoin ETF proposals are required to receive the Securities and Exchange Commission (SEC) approval before they are allowed onto the market. So far the SEC hasn’t approved any Bitcoin ETF proposal despite many applications by the institutions. Earlier also the SEC has raised concerns while highlighting reasons for its multiple rejections over market manipulation, liquidity, financial crime, and other relatable issues.
As per the latest document, the SEC mentioned that the authorities are contemplating and instituting new proceedings on whether to approve or disapprove a proposed rule change. The long awaited VanEck SolidX Bitcoin Trust has to wait for the decision to get the approval and to list its shares.
Objective of Bitcoin ETF Delay by the SEC
As a reason for delay it is also mentioned that “The investment objective of the Trust would be for the Shares to reflect the performance of the price of bitcoin, less the expenses of the Trust’s operations.” The document further says that, “The Trust would not be actively managed and would not engage in any activities designed to obtain a profit from, or to ameliorate losses caused by, changes in the price of bitcoin.”
This time again the comments are invited from the public and the interested persons by the authorities on the proposed rule change. SEC wanted to additionally analyze the proposed rule change and not yet reached to any conclusion with respect to any of the issues involved with the proposed bitcoin ETF proposal.
VanEck Bitcoin ETF Application
The New York-based VanEck- the money management firm founded in 1955 and offers assorted financial options for the investors ranging from mutual funds, exchange-traded products (ETPs), variable insurance portfolios, individual account management, and many more alternative investment options.
The establishment in an effort to increase its reach and portfolio of 400 institutions that also includes endowments, foundations, hospitals, pensions, and private banks also proposed VanEck/SolidX Bitcoin ETF with Cboe BZX and asked SEC for its approval last year. However, in the absence of positive response by the US Securities and Exchange Commission (SEC) the application was withdrawn and due to the government shutdown. In Jan 2019, the application was submitted another time.
On February 20th, the new application was filed with the Federal Register. As per this application, the SEC was in a binding term of 90 days to come up with a decision to approve, deny, or delay it. In the same month on February 15th, to the surprise, one another Bitcoin ETF application from Bitwise Asset Management with NYSE Arca also filed with the Federal Register. However, the SEC delayed its decision on Bitwise filing and continued mulling over the application of VanEck and SolidX and in a way wanted use its full 90 days term to come to the conclusion.
The renowned legal practitioner Jake Chervinsky tweeted that the chances of approval are less and possibly it can be delayed or denied again.
That means the Bitcoin ETF which can become the strong catalyst in cryptocurrency adoption and its price increase still need to wait for the SEC decision.
The tweet shows SEC new deadline for the decision which is August 19. It is also mentioned that it can be delayed by one more time which would come finally by October 18.
Interestingly, as per latest data the overseers haven’t approved anything on bitcoin ETFs in the U.S., and from the initial days of the application submission they are envisaging the pros and cons of the bitcoin ETFs because after the approval the adoption of the famous digital assets would certainly going to increase with its price affecting the people worldwide. The decision would also reportedly going to affect the cryptocurrency exchange business somehow.
KoinPost would appreciate the reader’s response to the new SEC’s decision and the existing status quo.