Justifying the delay, SEC stated that they need enough time to take action on the proposed rule change.
The quest to get approval for Bitcoin Exchange-Traded Fund (ETF) application is still on as the US Securities and Exchange Commission (SEC) delays VanEck’s application for another 45 days. VanEck (ASX: GDX), a company with about $65 billion in Asset Under Management (AUM) had the latest application of its Bitcoin ETF submitted on June 24.
The regulators’ decision was expected by August 27. However, the SEC has postponed its decision by another 45 days according to an August 24 filing. This means authorities have until October 11 to “either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.” If approved, Van Eck’s products would be on the Cboe BZX Exchange.
Last year, the SEC disapproved an application submitted by VanEck, over concerns of fraud and manipulation of the Bitcoin spot market. Other than VanEck, the regulators have rejected several applications for spot-based Bitcoin ETFs.
However, the Commission approved several Bitcoin futures ETFs last year. In October 2021, Van Eck joined ProShares to launch its Bitcoin futures ETF.
Justifying the delay, SEC stated that they need enough time to take action on the proposed rule change.
“The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” according to SEC.
A recent request by Grayscale to convert its Grayscale Bitcoin Trust (OTCMKTS: GBTC) Into a spot ETF was also disapproved, making them sue the Agency. According to SEC, the application did not capture any measure to prevent fraud and manipulative acts and practices. Also, it was not designed to protect investors and public interests.
Similar to that of VanEck, the regulator’s decision went through multiple delays. It also rejected Bitwise’s application for a spot Bitcoin ETF. As of now, the Agency has not approved any of such ETFs.
Grayscale does not find it convincing enough to approve Futures ETFs but rejects spot ETFs.
It is expected that the court decision on the case would be between the third quarter of 2023 and the first quarter of 2024.
Craig Salm, vice-president of legal at Grayscale believes that the SEC needs spot exchanges like Coinbase and Kraken to have more oversight to approve Bitcoin ETFs.
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