Bitcoin Exchange Traded Fund had been considered by the United States Securities and Exchange Commission but it looks like there would be further delay in making final announcement for it. Here, we are speaking about Bitcoin ETF or the Exchange Traded Fund from VanEck.
Cryptocurrency Market Instabilities
As some of you may be aware of the situations that have hit the cryptocurrency world in recent days, it was indeed a decision to be made by the concerned authorities. In addition to this, 2018 is almost to an end due to which decision on VanEck’s ETF has been deferred to the 27th of February 2019.
In a statement released on 6 December 2018 by U. S. SEC, it clearly mentioned reasons for the delay, one of them being that anything which relates itself to cryptocurrency has to be thoroughly checked for any loop holes. It is only when all facts fall in to place shall the authorities approve or may even disapprove the ETF put across by VanEck.
Another surprising factor we may look at is: $BTC ETF has been in pending list for quite some time as Securities and Exchange Commission from the United States had rejected ETF by VanEck (Investment Firm) apart from SolidX (Blockchain Company) a few times in 2018 as well.
Will Bitcoin Exchange Traded Fund get US SEC’s Nod?
As per the Director of Digital Asset Strategy of VanEck, there does not seem to be any reason for U. S. Securities and Exchange Commission to delay the decision of ETF further.
Gabor Gurbacs, Director of Digital Asset Strategy, VanEck further went on to add that the team is confident of having approval of US SEC this time.
Stringent rules have taken the positions resulting in numerous Bitcoin ETF Applications being rejected by the United States SEC on the grounds of preventions. These preventions mainly connect to fraud as well as market manipulation (seen greatly now a days).
In case every detail goes as planned then US SEC shall ensure of having Bitcoin Exchange Traded Fund by VanEck and SolidX on CBOE or the Chicago Board Options Exchange. When we consider Securities and Exchange Act, then SEC has got about 240 days in which the authority can understand any ETF Application in detail before making a final call.
Keeping this Act in mind, US SEC has got time till the 27 February 2019 to make a decision on whether to allow BTC ETF coming in to action or not.
It may also be recalled that there were 9 Bitcoin ETF Applications in total that SEC rejected in the month of August. Most of them were in rejected state as they did not comply with the rules laid down by the authorities.
There are other firms such as Gemini who believe to get through the ETF applications this time round. Nevertheless, time apart from the features of an ETF would decide the fate of a BTC Exchange Traded Fund to be listed or not. Until then it is better that we follow rules and stay in good books of the authorities.