It looks like SEC’s thought process over Bitcoin ETF approval is moving from a very slow pace. The securities regulator of United States has once again rejected VanEck’s Bitcoin ETF proposal according to the latest filing on the official SEC portal. The filing states that SEC has added a period of 35 more days to gather more information regarding the product. Instead of following an adopt-and-improve approach SEC wants to get everything right about Bitcoin ETFs from day #1. God knows if that is possible!
VanEck ETFs are the product of Chicago Board Options Exchange (CBOE). Their proposal with SEC was filed by CBOE for the first time in July 2018. The application was rejected in December. Then CBOE filed it again with SEC after doing some changes, but the shutdown of Trump administration forced CBOE to withdraw it. The application was refiled in February after US government’s shutdown came to an end. And today SEC has asked for more time of 35 days to take a decision.
In its filing published yesterday SEC has also asked 14 questions to the people. SEC will use the answers collected as public opinion to take its decision. The questions mostly revolve around investor protection from fraud. SEC’s filing said:
“The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,’ and ‘to protect investors and the public interest.’”
Now it will be interesting to see what comes out after this period of 35 days. It will still be a timely decision if SEC can take it after 35 days. Also, the impact of this delay announced by the SEC has shown up in the markets as all major coins are down by about 1%. Let’s see how quickly things recover from here!