SEC Undecided on Bitcoin ETF, Sets Deadline for Next Year

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Photo Credit: WSJ

Following the persistent clamour for Bitcoin ETF by crypto enthusiasts, the U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on bitcoin exchange-traded fund (ETF). And according to an official document published on Thursday, the SEC has now moved the decision deadline to next year, precisely Feb. 27, 2019.

For many who have been following the Bitcoin ETF draft, you’ll recall that the proposal was first submitted by SolidX a blockchain startup and renowned money manager VanEck, who was reported to have partnered with the Cboe exchange earlier this year.

While the decision to either grant or reject the proposed Bitcoin EFT has lingered for a while, there may be light at the end of the tunnel as the SEC rules clearly state that a decision on the proposed ETF cannot be delayed any further. What this now means is that come Feb, 27, 2019, the commission will either have to approve or reject the ETF.

This new decision is coming after months of haggling that has seen the commission reject previous Bitcoin ETF proposals. In August this year, the regulator was reported to have rejected nine proposals submitted to the commission by top crypto brands including ProShares, GraniteShares and Direxion. However, the rejections were suspended the following day as the commission had later agreed to review all of the proposals.

Following its plans to review the earlier rejected proposals, the commission had reopened a comment period that will allow the general public to share any statement in support or against the approval.

And while the commission has no doubt received lots of proposals in the past, this new proposal by VanEck/SolidX differs in that its value proposition is dependent on Bitcoin and not the future markets like earlier proposals.

For this particular proposal, the commission had reopened a comment period with October 17 deadline for support or rebuttals. To date, the commission has garnered 1,600 comments for this new proposal.