The United States Securities and Exchange Commission (SEC) has decided to hold off the decision regarding a Bitcoin exchange-traded fund (ETF) once more.
The SEC announced the news in a document which outlines the reason for delaying the decision to list the ETF by VanEck and Solid Xon the Chicago Board Options Exchange (CBOE):
“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change.”
The rule change was first suggested on the 2nd of July 2018, as published in the Federal Register. The greatest window period of 240 days (as declared by the SEC) puts the final date for a decision at the 27th of February 2019.
As the proposed rule change was first published in the Federal Register on July 2, 2018, the maximum period of consideration falls 240 days later, on Feb. 27, 2019.
As reported in September of this year, the SEC have requested more information related to the proposed ETF, claiming at the time that there was not adequate statements support to the proposal.
Looking at the ecosystem and other ETF decisions – earlier this year, Gemini faced the rejection of their second proposed ETF. At the time, the SEC showed that there might be a glimmer of hope despite the gloomy news, saying that “existing or newly created bitcoin futures markets may achieve significant size, and an ETP listing exchange may be able to demonstrate in a proposed rule change that it will be able to address the risk of fraud and manipulation by sharing surveillance information with a regulated market of significant size related to bitcoin, as well as, where appropriate, with the spot markets underlying relevant bitcoin derivatives”.