Currently, Bitcoin Exchange Traded Funds (ETF), are a hotly debated topic, all around the crypto world.
One of the major reasons why the Securities and Exchange Commission (SEC) has been in the limelight in the recent times is because, the fate of regulating cryptocurrencies, and by extension, approving ETFs lie primarily in the regulatory body’s hands.
Earlier, numerous exchanges had filed applications with the body in order to bring in bitcoin ETFs. However, the SEC had rejected almost nine of them in the past few months.
Among the other ETFs, one that had the crypto community hanging by a thread was the application filed by VanEck SolidX Bitcoin Trust, backed by the Chicago Board of Exchanges (CBOE). However, it seems that the community may have to wait a little longer as the SEC has postponed its verdict on the same.
As per the body’s official press release, “On June 20, 2018, Cboe BZX Exchange, Inc. (“BZX” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”), pursuant to Section 19(b) of the Securities Exchange Act of 1934 (“Act”) and Rule 19b-4 thereunder, a proposed rule change to
list and trade shares of SolidX Bitcoin Shares (“Shares”) issued by the VanEck SolidX Bitcoin Trust (“Trust”) under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares. The proposed rule change was published for comment in the Federal Register on July 2, 2018. On August 7, 2018, 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 release also stated that as of September 19 2018, the website had received nearly 1400 comments, on the proposed rule change.
Touching on the topic of whether or not to approve or disapprove the application, the Commission sought more time to do the same. It said, “Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the
proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change. Pursuant to Section 19(b)(2)(B) of the Act, the Commission is providing notice of the grounds for disapproval under consideration.”
The SEC said it was taking this measure to ask commentors on various issues pertaining to ETFs and wanted to give this extended time to shareholders to provide their feedback on the same.
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