Applications of Bitcoin EFT are piling up as the United States Securities and Exchange Commission (SEC) continues to weigh its options. Wall Street’s most powerful regulator has once again extended the timeline for making decisions on whether or not to approve Bitcoin exchange-traded funds (ETFs). The commission extended the deadlines for four applications by 45 days.
The first decision on a proposed rule change that would allow the listing and trading of Bitcoin ETFs was postponed until November.
New deadlines set by the SEC
Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust, and Kryptoin Bitcoin ETF are the four Bitcoin ETFs awaiting the Commission’s decision. Approval was rescheduled for November 21, December 8, December 11, and December 24, respectively.
“The Commission believes that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and any comments,” the SEC stated in an official statement.
On September 8, the SEC issued a statement announcing that it was extending its decision to approve the VanEck Bitcoin Trust for 60 days until November 14. On April 28, the SEC had said its decision on VanEck’s filing would come in June at the earliest. This was just hours before an earlier deadline. VanEck’s filing launched companies’ momentum toward requesting bitcoin ETF approvals.
Related reading | Will the SEC approve a Bitcoin futures ETF in 2021? Here are the implications
SEC Chairman Gary Gensler has been moving aggressively to impose stricter restrictions on cryptocurrencies. In a recent interview with the Washington Post, he compared stablecoins to poker chips. However, he has indicated that he is more open to cryptocurrency ETFs, suggesting that those that adhere to strict rules for mutual funds could provide protection to investors.
Bitcoin exchange-traded funds in the US
Publicly traded fund managers have been eager to jump on the cryptocurrency trading bandwagon. However, they may be waiting longer than expected after comments from Securities and Exchange Commission Chairman Gary Gensler dampened hopes for a speedy approval of bitcoin ETFs this year.
Gensler has previously highlighted his concerns about sloppy supervision, and his stance indicates that the commission wants to impose stricter regulations on cryptocurrencies before approving a list of bitcoin ETF applications. An increasing number of ethereum ETFs have joined the application waiting list, after VanEck and WisdomTree submitted their approval in May. The SEC rejected some previous bitcoin ETF applications.
Related reading | How the SEC “dug a hole” by not approving a Bitcoin ETF
In a June 16 statement, regulators said they would take more time to seek public comment. The SEC specifically asked investors for their opinions on bitcoin ETFs.
In early September, Fidelity Digital Assets met with regulators privately to push for approval of its proposed bitcoin exchange-traded fund. They argued that the cryptocurrency market is now big enough to support it. The investment firm’s president, Tom Jessop, and other executives attended a virtual meeting with the regulator on Sept. 8, according to a presentation outlining investor demand for the product.
BTC is trading at $ 47.9 thousand | Source: BTCUSD on TradingView.com
The securities regulator is considering applications from more than 20 companies. The introduction of the first Bitcoin EFT by the SEC is expected to raise the technical indicators of the asset with the entry of traditional investors to the market.
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