United States Securities and Exchange Commission (SEC) has been notably reluctant in greenlighting Bitcoin Exchange-Traded Funds (ETF) and on Monday the 12th, it postponed making a decision on three of these ETFs.
Initiated a few months ago, the ETFs were filed to seek regulatory approval, hoping to become the very first authorised Bitcoin ETFs. The proposals were made through the NYSE Arca and Cboe BZX, by Wilshere Phoenix, Bitwise Asset Management and VanEck/SolidX all of which appeared in the Federal Register at different times in February and June.
Based on the timeline, a final Bitwise ruling should be announced on the 13th of October with VanEck/SolidX coming in 5 days later on the 18th. Wilshere Phoenix should see its next decision a few weeks earlier, on the 29th of September.
The SEC’s reluctance has long worried the ETF proposers and the rest of the sector in general. The SEC has always mentioned certain worries regarding approving Bitcoin ETFs including the difficulty in market surveillance and potential manipulation. While some believe that this is relatively new territory and the SEC really does need to take its time, many others think this is effort from the SEC to stifle the growth and development of the cryptocurrency sector.
Bitwise Asset Management has tried to get head of this in the past, making a few publications to point out the fact that the Bitcoin market is not as large as thought and is also very well managed and regulated. Bitwise believes that the market will be fine-tuned well enough on its own if the problem of bloated data can be solved.
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