A few hours ago, the US Securities and Exchange Commission (SEC) announced that they have once again postponed the approval of three bitcoin ETFs.
The three ETFs, proposed at the beginning of the year by the asset managers Bitwise Asset Management, VanEck/SolidX and Wilshire Phoenix, filed with the exchanges NYSE Arca and Cboe BZX, are all at work to become the first bitcoin-based ETF.
The proposals were published in the Federal Register last February and June, initiating the 240-day legal period within which a final decision by the SEC was to be obtained.
Thus, the final decisions on the Bitwise and VanEck/SolidX proposals will have to be made by the 13th and 18th of October, while the final decision on the one proposed by Wilshire Phoenix will have to be made by the 29th of September.
SEC postpones once again three bitcoin ETFs
ETF stands for Exchange-Traded Fund. These are listed funds that replicate the performance of an index.
In the case of bitcoin, it would be a fund that holds bitcoin and sells shares, which can be purchased by potential customers through their account. So, the idea is to accumulate a significant number of bitcoins and make them resemble financial tools and products that can be traded on the markets in a similar way to shares.
In recent years a number of companies have proposed bitcoin ETFs, but the US regulatory agency (SEC) has not approved any solution to date, mentioning as reasons possible market manipulation, market control and a potential divergence with the trading of bitcoin futures.
Bitwise has been trying to address these concerns by publishing several reports indicating that the bitcoin market is smaller, more regulated and better supervised than it may seem and that it operates in close cooperation with the CME futures market.
Bitwise’s ETF proposal, one of many that the SEC is considering, has received support from a number of companies in the industry, including Spencer Bogart of Blockchain Capital, Matthew Walsh of Castle Island Ventures, Sam McIngvale of Coinbase Custody, Kristin Smith of the Blockchain Association and more than 30 other industry figures.
It will, therefore, be necessary to wait until the end of September to see what will happen.