By Shelly Melancon (Switzerland)
The U.S. Security and exchange commission is yet to make any decision regarding VANECK bitcoin ETF again, citing insufficient public commentary as its reason. The news was made available via a filing released yesterday night. Since this news was revealed before the June 17 deadline, it suggests that the SEC is deliberately delaying the decision.
SEC had requested a 45-day extension in April when it first announced a delay. SEC has, however, chosen next month as its next date to make a decision. SEC will now request public comments regarding this proposal which was submitted by Cboe global markets. While investors will be disappointed about another delay, their comfort will be that SEC is only delaying the ETF decision and not rejecting it outrightly.
Per BTC peers, VANECK has sent its bitcoin ETF proposal to the SEC since December of last year.
Is SEC Trying to Protect Investors?
A much larger number of investors can easily invest in bitcoin through a bitcoin ETF. It is similar to a stock listing. Thus, allowing investors easier access to the crypto market. Now, this might be SEC’s worry; as more investors have easier access to the crypto market via ETF, they become more exposed to the volatility of the crypto market.
Previously, SEC has disclosed two main reasons for not approving many bitcoin ETFs – protecting investors and high volatility of the crypto market. Last month’s crypto market correction will only increase SEC’s fears. Even bitcoin is still suffering its effects today though it’s still rallying up.
Fraud and market manipulation are other reasons cited by SEC. The SEC had requested that Cboe send its plans against the consequences of market manipulation and how it intends to combat fraud. Unsurprisingly, SEC seeks public comments on changes in bitcoin transparency in the last five years, size, and regulation of bitcoin futures contracts.
Crypto analysts and advocates continue to seek an ETF stating that the market should now be considered a significant asset class. However, regulators are still confused about it since it’s still at the infant stage and foresee that granting public access to it might cause various legal and economic ramifications.
Will SEC Approve an ETF Before the Year Ends?
The truth is that it is uncertain that the SEC will approve any ETF this year. For example, while VANECK has also submitted the proposal for an Ethereum ETF, the SEC has yet to release updates about it because it was just submitted last month.
One of VANECK’s directors, Gabor Gurbacs, has implored SEC to approve bitcoin ETFs as the market is a “potential trillion-dollar value.” While America remains undoubtedly slow in embracing cryptocurrency, most developing nations are embracing it at a fast rate.
Though the VANECK ETF is the most prominent ETF application, there are other ETF applications on SEC’s desk. SEC may be waiting for an all-encompassing crypto infrastructure from all regulatory bodies before making any decision. No matter what, there would be news from the SEC regarding this situation this year.
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