The hope for approval of a Bitcoin (BTC) exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC) further dwindles, as the SEC delayed its decision on the VanEck bitcoin (BTC) exchange-traded fund (ETF) proposal, according to an official SEC filing on May 20.
As per the filing, SEC has added a 35 day period in order to gather more information and opinions on the proposal that was initially filed by the Chicago Board Options Exchange (CBOE) last year.
Later the CBOE withdrew its request for a rule change in January, owing to the U.S. government shutdown decreased the SEC’s operational abilities. On January 31, the firm subsequently reapplied after the government shutdown was resolved.
In today’s filing SEC puts forth a lists 14 questions to the public about the proposal with an intent of employing these answers and arguments to help them reach a verdict. These questions are specifically targetted at protecting investors and public interest from fraud and similar exploitations. The report states:
“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.’”
The SEC previously delayed its decision on the Securities Act update proposal which would allow bitcoin ETFs to be traded on CBOE. Notably, the CBOE initially filed for the proposed SEC rule change on February 15 with a 45 day period assigned for approval or disapproval. Following which the decision has been postponed twice.
In March, the SEC delayed its decision over cryptocurrency index fund provider Bitwise Asset Management’s bitcoin (BTC) exchange-traded fund (ETF) is facing a delay. Similar to the CBOE’s action, the regulator seeks public comment on the matter.
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