SEC delays decision on approving bitcoin ETF


The Securities and Exchange Commission on Wednesday delayed its decision on approving the VanEck Bitcoin ETF till June.

The SEC sometimes takes 45 days from when an software to commerce is filed. The 45 day window for the VanEck Bitcoin ETF ends on May 3, however the SEC is extending the deadline, as anticipated.

“The Commission finds that it’s applicable to designate an extended interval inside which to take motion on the proposed rule change in order that it has ample time to think about the proposed rule change and the feedback obtained,” J. Matthew DeLesDernier, Assistant Secretary on the SEC, mentioned in a submitting.

While bitcoin ETFs exist within the U.S., they don’t instantly personal bitcoin. They personal portfolios of shares deemed to have publicity to blockchain know-how. However, some bitcoin watchers imagine late 2021 may lastly be the yr a bitcoin ETF is permitted as a result of Gary Gensler was permitted to go the SEC.

Gensler, permitted by the Senate earlier this month to steer the SEC, is taken into account an professional on cryptocurrency and has taught programs on digital currencies and blockchain on the Massachusetts Institute of Technology.

Questioned in March how the SEC ought to regulate bitcoin and different digital belongings, Gensler advised lawmakers that the duty may fall throughout the federal government relying on how belongings resembling bitcoin are labeled.

In the previous, the SEC mentioned it was fearful about excessive value volatility and fraud in cryptocurrencies. It additionally famous that 75% of bitcoin buying and selling happens abroad on unregulated overseas exchanges that might be manipulated.

The value of bitcoin and different digital belongings have soared in 2021 as a rising variety of funding managers and banks develop comfy contemplating it as each a possible funding alternative and a medium of trade.

Though the world’s largest digital asset has struggled in current weeks, its current price round $54,400 is much above the place it traded one yr in the past below $10,000, based on Coin Metrics.

Following VanEck, Fidelity in March disclosed in a authorities submitting that it is working to launch its personal bitcoin ETF.

— with reporting from CNBC’s Bob Pisani.

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