The U.S. Securities and Exchange Commission (SEC) pushed back making a decision on VanEckâ€™s proposed bitcoin exchange-traded fund (ETF) to at least June.
The securities regulator announced Wednesday it was designating a longer deliberative period for the bitcoin ETF application, saying it needed to ensure it has â€œsufficient timeâ€ to evaluate the proposal. There are 10 active bitcoin ETF applications, including VanEcks, and the agency is currently looking at three of them.
A bitcoin ETF could be key for mainstream adoption because it would be a regulated product allowing financial institutions and retail traders to gain exposure to the cryptocurrency without having to invest in it directly.
â€œThe Commission designates June 17, 2021, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change,â€ states the filing, signed by Assistant Secretary J. Matthew DeLesDernier.
The SEC can take up to 240 days to determine whether it will approve or disapprove the ETF application. To date the agency has taken the full 240 days for most of the bitcoin ETF applications it has considered, and then rejected every application.
VanEck filed its ETF proposal at the end of 2020, with Cboe BZX filing a 19b-4 form formally announcing its intention to act as VanEckâ€™s exchange partner earlier this year.
The SEC is also looking at Kryptoin and WisdomTreeâ€™s bitcoin ETF applications. Other applicants, ranging from financial services giant Fidelity to former White House Communications Director Anthony Scaramucciâ€™s new firm, await their own evaluations.
This content is for informational purposes only and should not be construed as investment advice. Nothing mentioned in this article constitutes any type of solicitation, recommendation, offer or endorsement to buy and sell any crypto asset. Trading in any financial market involves risk and can result in loss of funds. Before investing any money, one should always conduct thorough research and seek professional advice.
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