The U.S Securities and Exchange Commission (SEC) has again postponed its decision on the Bitcoin Exchange Traded Fund (ETF) as published in an official notice, Thursday December 6, 2018.
According to the SEC, the new deadline set for February 27, 2019 is necessary so as to allow the commission further review the various ETF proposals presented by investment company VanEck and blockchain startup SolidX; who both partnered with the Chicago Board Options Exchange (CBOE).
Quoting the official statement, it reads:
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.
As is expected under its binding act, ‘the SEC is to issue an order approving or disapproving the proposed rule change not later than 180 days’ from the date of publication of notice, a period after which if the SEC deems necessary, it could extend by 60 days; as seen in this case.
However, this latest extension means that the next announcement come February must either be an approval or disapproval of the stated ETF.
This latest notice comes after months of delay, rejection and recalls of the some rejected ETF proposals by the commission, with the SEC subsequently calling for more comments and public statements in support or against the recalled ETFs. For the VanEck/SolidX ETF, its proposers seem hopefully with the ETF having its value on Bitcoin itself, rather than futures markets as proposed by the other recalled nine ETFs.
In light of this, VanEck’s Director of digital asset strategy, Gabor Gurbacs expressed optimism that an ETF approval is imminent. In his words; “Its is fairly certain to us that America wants a Bitcoin ETF. We think we have met all market structure obstacles and requirements on pricing, custody, valuation and safekeeping, so we are cautiously optimistic.”
From reports, last week’s SEC meeting with representatives of VanEck, SolidX and CBOE had the ETF applicants making precedent references to other commodities ETF like Gold and Crude Oil as basis for approval.
In all, the announcement had no evident spark or questions around the sector as most enthusiasts focus on the impact of the bear market on their portfolio holds.