The SEC approval for two Bitcoin ETFs has yet again been delayed by the Securities Exchange Commission (SEC) in the US. On 29th March 2019, SEC released a press release of its letter to the Cboe BZX Exchange, Inc., and NYSE Arca and Bitwise citing the designation of a “Longer Period” of time for the pending decision.
Bitwise and NYSE Arca Application
The Bitwise Bitcoin ETF was filed with the SEC on 15th February 2019; the SEC has set a 45-day rule where it has to come up with a decision on the application within 45-days of filings. However, the SEC can also extend the decision for another 45 days for specific fillings.
The Commission finds it appropriate to designate a longer period within which to take such action on the proposed rule so that it has sufficient time… Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act, designates May 16, 2019 as the date by which the Commission either approves or disapproves.
VanEck SolidX Bitcoin ETF
The VanEck SolidX Bitcoin ETF application was filled last year. However, early in January Cboe withdrew its application and refiled again on 30th January which was published on 20th February, commencing the 45 days interim period.
The date for approval or disapproval of the VanEck application has now been extended till 21st May 2019.
Gabor Gurbacs, Director, Digital Assets Strategy at VanEck tweeted on the matter saying:
“The SEC extends the review period on the VanEck SolidX
#Bitcoin #ETF. This is expected. Next milestone 05/21/2019. We will keep you updated with public information and timelines. Thank you for your support! We are fighting the good fight together.”
Will the Decision Affect the Price of Bitcoin (BTC)?
Gurbacs rightfully noted that “this is expected” from the SEC, as this not the first time when it has delayed a decision on Bitcoin ETF.
The ETF proposals filed last year were extended for 240 days from its day of filling the application. The decisions were finally extended again on 7 August 2018 which triggered a small sell-off, Bitcoin (BTC) dropped by 1.69%. Finally, VanEck withdrew the application and re-filed with some rule changes. However, indecision continues to prolong. The Gemini Trust Bitcoin ETF proposal is also pending with the SEC and there is no update on it as well.
The price of Bitcoin at 5: 00 hours UTC on 30th March was trading at $4065. It was trading at 0.2% lower on the daily scale.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com