SEC Postpones Decision on Bitcoin ETF Until February 27th

Article by · December 7, 2018 ·

The United States Securities and Exchange Commission (SEC) has suspended its decision making on a Bitcoin (BTC) exchange-traded fund (ETF) until February 27, 2019, according to an official document published Thursday, Dec. 6.

The securities regulator disclosed in a notice posted online that the review period for the ETF is being postponed to Feb. 27, 2019. The application was submitted earlier this year by money manager VanEck and blockchain startup SolidX which is in collaboration with the Cboe exchange.

According to the SEC rules, there cannot be any more delay in terms of making a decision on the proposal hence, the ETF must either be approved or rejected in the subsequent notice.

The move was taken following months of doubts as the SEC disapproves other previous ETF applications, particularly in August when nine applications submitted by ProShares, GraniteShares, and Direxion were simultaneously rejected by the regulator. The SEC suspended the rejections the following day as it announced that all the proposals would be reviewed.

The SEC afterward opened a comment platform for the public and set November 6 as the deadline for the general public to share any new statements in support of or against allowing the ETFs to be endorsed.

However, the proposal of VanEck/SolidX is different from the others in such a way that its worth depends on bitcoin itself, instead of futures markets just like the other nine.

Similarly, a comment period was reopened for this proposal by the SEC, whereby October 17 was set as the deadline for any statements and the deadline for any rebuttals was designated as October 31.

According to Thursday’s notice, over 1,600 comments have been received.

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