SEC delayed a decision on approving or rejecting a BTC ETF
The Securities & Exchange Commission of the United States delayed its decision on crypto once again. SEC has once again delayed a decision on whether to accept or to reject a Bitcoin exchange-traded fund or ETF on crypto index fund provider Bitwise Asset Management.
In one new document from recently, which was published by SEC, the regulator said that it is going to hold off on making a decision on the Bitwise ETF proposal filed with NYSE Arca.
This proposal has been filed for the first time in January 2019, kicking off an entirely new race to launch a Bitcoin ETF in the United States, which is actually expected to bring some fresh money – hence, liquidity – to the cryptocurrency space and community.
In the same filing, the SEC also requested for public comment from interested parties. The commission asks interested individuals to provide written submissions of their views, data, as well as arguments with respect to the problems identified above, and other concerns which they may have with the proposal.
The Bitcoin ETF is different from previously proposed BTC ETFs
Bitwise initially filed for the ETF in February of this year, under the condition that the SEC is going to reach a decision in 45 days only. The proposed BTC EFT of the firm differs from the other previously proposed BTC ETFs in that it actually draws prices from many other crypto exchanges, with one purpose on the mind – to better represent the market.
In the original filing, Bitwise explicitly stated that its BTC ETF is going to require a regulated third-party custodian to hold its physical Bitcoin.
It said that having a regulated bank, or also trust company holds physical assets of a fund was the standard under the United States fund regulation for the last 80 years, and they believe that it is now possible with BTC.
The SEC had delayed its decision first on the Bitwise ETF application in March of this year. After that decision, the SEC has been obligated to decide on whether to approve the rule change by the 16th of May or not.
According to a filing from the 14th of May, the public comment period is going to last about three weeks after the most recent amendments to the Bitwise ETF app are published in the Federal Register, followed by about two weeks for responses.
BTC or crypto ETF is possible, but it could happen far away in future
Together with the postponed decision on Bitwise, the SEC also postponed a decision on VanEck/SolidX proposal. The regulation has still to approve any Bitcoin ETFs, although both the experts in the space, as well as officials with the agency seem to think that it is only a question of time.
One digital asset, as well as fund manager called Crypto Crescent Asset Management, also proposed a crypto ETF, which is going to give the customers some exposure to both Bitcoin, and Ether. The firm, which partners with NYSE Arca, hasn’t formally filed its proposal.
In December 2018, a commissioner from SEC, named Hester Pierce, dubbed Crypto Mom by the community because of her dissent with the decision of SEC to reject a BTC ETF, proposed by Tyler and Cameron Winklevoss, said that a BTC or crypto ETF will be definitely possible, but it could be some years away.