The Fate of 9 Bitcoin ETFs Remain With SEC

The fate of nine bitcoin exchange-traded funds (ETF) rests with the United States Securities and Exchange Commission. For quite some time, the regulator is adopting a dilly-dallying approach towards taking a decision on it even as investors and traders are keenly waiting for it. However, the current indications suggest that the SEC could finally make a decision on the nine planned ETF in the next two-month period. Any favorable decision would mean positive sentiments to boost the bitcoin price.

Delay in Decision Making

The SEC is taking its own time to take a call on the proposed change of rule by the Cboe BZX Exchange. If the change of rules takes effect, then there would not be any issue in listing ETF supported startup SolidX, as well as, its investment firm VanEck, reported. In June, SolidX-VanEck has submitted their proposal, and it is one of the four filings that remain with the regulator for approval.

There were also others like GraniteShares, Direxion, ProShares that have submitted their applications. In all, there are a total of 10 bitcoin-associated funds that are waiting for the SEC approval. However, there is only one ‘physical’ ETF among the submitted proposals, and that came from VanEck-SolidX. The deadlines are normally set based on the timing of the proposals published in the Federal Register. After this, there are 45 days for the regulator to make a decision. The agency is also empowered to take as much as 240 days after the publication in the Register.

As far as ProShares’ two funds are concerned, the deadline for a decision is August 23, which is close to two weeks away from now. NYSE Arca submitted the rule change on December 4 last year for those products. Apart from this, the next month will see a number of deadlines popping up for bitcoin ETFs. The first deadline will start on September 15. By this date, GraniteShares should get either approval or denial as the funds were proposed on January 5 initially.

Similarly, the deadline in respect of four funds from Direxion is September 21. The company submitted its filing on January 4. In the say way, the SEC has postponed its decision to September 30 on the SolidX-VanEck proposal. At the same time, there is every possibility that the agency could seek more time considering the current market conditions around the globe, which is largely unregulated.

Final Decision Next Year

Therefore, a final decision could be pushed to February next year. At the same time, no one could rule out the possibility of the agency taking an early decision, i.e., before the deadline.

Traders and investors want the SEC to take a final decision on the bitcoin-associated ETF so that it could attract more investors. The regulator’s decision to defer decision has only dragged down the prices of bitcoin and the overall cryptocurrency market. The agency seems to be worried about the trading pattern in unregulated markets, and that is weighing on it.

Andri Triyanto

Andri has worked as a research analyst with a big equity analysis company. His perspective of looking at the market is unique. He senses an opportunity when it’s near. He stays well updated with the market happenings.