The U.S. Securities and Exchange Commission (SEC) has once more defered the outcome on the VanEck/SolidX bitcoin exchange-traded fund (ETF) proposal. According to a new document published on Monday, the SEC declared it would be “Instituting Proceedings to Determine Whether to Approve or Disapprove a Proposed Rule Change to List and Trade Shares of the VanEck SolidX Bitcoin Trust”
“On March 29, 2019, pursuant to Section 19(b)(2) of the Act, the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.”
“The Commission has received 25 comment letters on the proposed rule change.”
Jake Chervinsky an attourney and former litigator provided further insights on the ETF situation and timeline going forward, tweeting:
“VanEck’s new deadline is August 19. The SEC can & likely will delay one more time for a final deadline of October 18.”
Hopes are still high amongst some that an ETF will be approved within the year. However, in late 2018, the SEC’s chairman, Jay Clayton warned that necessary changes were needed before a cryptocurrency ETF approval.
“What investors expect is that trading in the commodity that underlies that ETF makes sense and is free from the risk of manipulation,” … “It’s an issue that needs to be addressed before I would be comfortable.”
“Those kinds of safeguards do not exist currently in all of the exchange venues where digital currencies trade.”
The VanEck/SolidX bitcoin ETF was initially filed last year but was retracted in January due to the government shutdown. The proposal was later resubmitted that same month, shortly after Bitwise Asset Management (BAM) entered its own ETF proposal with NYSE Arca. BAM too has faced delays on its proposal.
The SEC has yet to approve any bitcoin ETFs, either opting to defer or outright reject any proposal that have been put before it over the years.