Bitcoin EFT applications pile up as the U.S. Securities and Exchange Commission continues to weigh its options. Wall Street’s most powerful regulator has again extended the timeline for deciding whether to approve Bitcoin Exchange-Traded Funds (ETFs). The Commission extended the deadlines by 45 days for four requests.
The first decision on a proposed rule change that would allow Bitcoin ETF to be listed and traded has been postponed to November.
New deadlines from SEC. set
Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust and Kryptoin Bitcoin ETF are the four Bitcoin ETFs awaiting the Commission’s decision. Approval has been postponed to November 21, December 8, December 11 and December 24, respectively.
“The Commission believes it is appropriate to set a longer period of time within which to respond to the proposed rule change so that it has sufficient time to review the proposed rule change and any comments,” the SEC said in an official statement.
On September 8, the SEC released a statement announcing that it was extending its decision to approve the VanEck Bitcoin Trust by 60 days to November 14. On April 28, the SEC announced that its decision on filing VanEck would be made in June at the earliest. This was just hours before an earlier deadline. VanEck’s filing kicked off the sprint of companies to file for Bitcoin ETF approvals.
Related reading | Will the SEC approve a Bitcoin futures ETF in 2021? Here are the implications
SEC chairman Gary Gensler has acted aggressively to impose stricter restrictions on cryptocurrencies. In a recent interview with the Washington Post, he compared stablecoins to poker chips. However, he has hinted that he is more open to cryptocurrency ETFs, suggesting that those who abide by the strict mutual fund rules could offer investor protection.
Bitcoin Exchange Traded Funds in the US
Exchange-traded fund managers were eager to hop on the cryptocurrency trading cart. You might be waiting longer than expected, however, after comments from Securities and Exchange Commission chairman Gary Gensler dampened hopes for a quick approval of Bitcoin ETFs this year.
Gensler has previously highlighted his concerns about negligent oversight, and his stance suggests that the commission may want to enact stricter rules on cryptocurrencies before approving a list of Bitcoin ETF applications. A growing number of Ethereum ETFs have joined the application waiting list after VanEck and WisdomTree were submitted for approval in May. The SEC rejected some previous Bitcoin ETF filings.
Related reading | How the SEC “dug into a hole” by not approving a Bitcoin ETF
In a press release on June 16, regulators said they would take additional time to seek comments from the public. The SEC asked investors specifically for their opinion on Bitcoin ETFs.
In early September, Fidelity Digital Assets met privately with regulators to push for approval of their proposed Bitcoin exchange-traded fund. They argued that the cryptocurrency market was now big enough to support it. The investment firm’s president, Tom Jessop, and other executives attended a virtual meeting with the regulator on September 8, a presentation that highlighted investor demand for the product.
BTC trading at $47.9K | Source: BTCUSD on TradingView.com
The securities regulator is currently examining applications from more than 20 companies. The SEC’s introduction of the first Bitcoin EFT is expected to increase the asset’s technical indicators as traditional investors enter the market.
Featured image from Financial Times, Chart from TradingView.com