SEC Postpones CBOE Bitcoin ETF For a Second Time; Calls For More Comments

The U.S. Securities and Exchange Commission (SEC) had yesterday published an official statement declaring its decision to postpone for a second time, the CBOE Bitcoin ETF application to trade the VanEck/Solid X Exchange Traded Fund (ETF). The delay is not a first as the SEC had in August turned down multiple ETF proposals while citing ‘market manipulation’ as its major concern. Following previous delays, a decision was expected by September 30th but by this latest announcement has been put on hold till February 2019.

According to sources, the SEC has initiated proceedings as regards the ETF decision and has received thousands of comments in support of the ETF, however, the SEC still maintains that it is yet to reach any conclusions in this regard.

The SEC also stated that it is seeking more public opinion and comments in order to inform its decision on the ETF application, as they hope the comments can answer questions regarding the following;

the general public view of the ETF, arguments by exchanges that Bitcoin is less susceptible to manipulation than other commodities, claims that the geographically diverse and continuous nature of bitcoin trading makes it difficult and prohibitively costly to manipulate the price of Bitcoin, that trading on inside information regarding Bitcoin is unlikely, that the fragmentation across Bitcoin markets, its relatively slow speed of transactions and capital necessary to maintain a significant presence on each trading platform all make manipulation of bitcoin prices through continuous trading activity very unlikely.

Speaking in lieu of comments received so far and the delayed decision, VanECk Director Gabor Gurbacs emphasized in his tweet that he is greatly impressed and humbled with the numerous positive comments and support received thus far for the VanEck-SolidX initiative to launch a well-constructed, liquid ,physical and insured Bitcoin ETF. He further quoted that about 1400+ letters had been received with an overwhelming 99%+ in favour of the ETF; in his words: “the public has spoken, Bitcoin is compatible with the U.S. and global capital markets.”

This delay seems to build up more faith of a possible approval as enthusiasts opine that the SEC could be warming up the idea of a Bitcoin ETF; especially with the appointment of a crypto-supporting Hester Peirce as SEC Commissioner, a recall of formerly rejected ETF applications by three companies and other positive comments received in this regard. Also the coin market has seen huge percentage increase a little after the postponement announcements in contrast to an expected downward trend, many believe a postponement is a positive pointer over an outright rejection; with BTC hitting the $6700 mark and notably XRP gaining over 41% in a general green-filled day across the crypto market.

 

What are your thoughts? Are these delays a positive pointer? Would the ETF revive the Bitcoin market amid this year’s slow growth?

 

 

 

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CryptoEnthusiast,CryptoEducator and Angel Investor,Writing Pro and Techie