The approval of the VanEck Bitcoin Exchange Traded Fund (ETF) would probably take a much longer time. The United States Securities and Exchange Commission (SEC) has shifted the deadline of its approval to July. The obvious reason for this day cuts to the fear of volatility and investor protection.
SEC declared its decision to delay asserting the ETF application on July 16 in a recent filing. Earlier in April, the financial regulator requested 45 days to conclude its decision. Accordingly, the SEC would require public comments to list the Cboe Global product.
To this day, the Securities and Exchange Commission has been hesitant to approve an ETF. The agency states its concern as relating to market manipulation and fraud. SEC wants to know if Cboe Global can guarantee that its products would not be susceptible to SEC’s outlined reservations.
The market capitulation of May and even further isn’t aiding the matter. SEC points to these conditions as valid evidence of its reluctance to approve an ETF.
The Possibility Of an SEC Bitcoin Approval in 2021
Unlike Canada, the US is yet to approve a crypto ETF so far. Investors and cryptocurrency enthusiasts within the country have called for the approval of ETFs saying that the asset class deserves more integration into the mainstream.
However, SEC just like several other regulatory bodies globally is skeptical to approve them due to potential economic and legal implications.
However, the possibility of SEC assenting an ETF is within reach. VanEck also applied for an Ethereum ETF, however that could wait as it was only submitted in the early days of May. A director at VanEck Gabor Gurbacs has called on the authorities to take advantage of the potential trillion-dollar market ahead of economic rivals like China.
Aside from the prominent VanEck ETF in waiting, several other ETF applications await consent from the SEC like WisdomTree. The increasing public attention to SEC’s next actions would likely trigger a swift decision.