SEC Postpones VanEck Bitcoin ETF Decision Until End of September 2018

VanEck Bitcoin ETF SEC

Bitcoin loses most of its gains from July rally as SEC postpones ETF decision

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the listing and trading of a VanEck-SolidX Bitcoin exchange-traded fund (ETF) until September 30.

Despite the interest towards an ETF-like product, the Commission declined the proposed rule change to list and trade shares of the Winklevoss Bitcoin Trust on the Bats BZX Exchange in late July. The first date to watch is August 10, which is 45 days since the Securities and Exchange Commission filed a notice on the proposal and when the time in which it would file a response runs out.

The SEC postponed its decision on whether to approve the Bitcoin ETF, dealing a blow to bulls who had bet a green light from the regulator would help sustain last month's tenuous rally.

The SEC also announced that September 30, 2018, is the new deadline date for a decision on the BTC ETF filing. The agency can determine fate of the proposals 240 days after the publication.

"I think there's too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores".

"The arrival of a potential bitcoin ETF remains top of mind for institutional investors seeking exposure to this emerging asset class, and there are now multiple applications pending approval by the SEC, most notably that proposed by Van Eck/SolidX".

In addition, there has been a "proliferation of information sharing agreements" that were not previously put in place in March past year.

During the interview, she was asked, "One of their [SEC's] concerns is that there may be price manipulation in bitcoin, the underlying asset, and what you are saying is that the SEC has no jurisdiction to look at the underlying asset, is that correct?" The presentation also claims that existing bitcoin investments do not provide investors with sufficient protection, naming GBTC and XBT Provider as examples.

Meanwhile, Newton added that in order to approve the decision, the SEC would have to do so in the knowledge the ETF was backed by physical bitcoin, "either stored by the Chicago Board of Exchange or a third party". And that, with more time to review, the SEC can analyze the true impact of an ETF, and sort through the public notice and comments that are being directed at it regarded cryptocurrencies.

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