The SEC of America still isn’t keen to give the greenlight to a cryptocurrency-backed ETF…
The American Securities & Exchange Commission (SEC) has once again deferred a big decision surrounding cryptocurrencies, and not for the first time this year either.
Once again, the SEC was faced with a decision as to whether to give the greenlight to an exchange traded fund (ETF) that’s backed by Bitcoin. And it’s announced on its website that it’s exercising its right to delay its decision, as well as calling for more input.
This time, the decision surrounds the Cboe Bitcoin ETF, and as per the SEC’s notice, it was considering “a proposed rule change to list and trade shares of SolidX Bitcoin Shares (“Shares”) issued by the VanEck SolidX Bitcoin Trust (“Trust”) under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares”.
Following the receipt of 1400 comment letters relating to the application, the SEC “institutes proceedings under Section 19(b)(2)(B) of the Act 7 to determine whether to approve or disapprove the proposed rule change”. Or, in more everyday language, it’s decided to buy itself some more time.
The 19-page text of the notice can be found on the SEC website, here.
The bottom line is that no decision is forthcoming soon, not least because the SEC has now invited further comments and submissions, across 18 different areas it’s identified within the proposal.
It follows a raft of rejections and deferrals of other ETFs put before the commission. An ETF, backed by cryptocurrency, is seen a needed next step for the broader acceptance of crypto, and bringing it closer – with more confidence – to mainstream investors.
For the moment, a state of limbo remains…