A document released by the US SEC last week confirmed that a decision on an application for such a derivative filed by fund manager VanEck and blockchain startup SolidX had been delayed for the third and final time.
The regulators have fixed a Feb. 27, 2019 deadline for announcing its decision on the proposed rule change which was first submitted by the partners in June. The reason why the SEC has delayed the decision is to have “sufficient time to consider this proposed rule change” according to the document.
Additionally, over 1600 public comments have been received by the SEC about the Bitcoin ETF and allowing a longer decision window will allow more or such opinions to be considered before a possible landmark announcement in February.
Is An SEC Approval For Bitcoin ETF Likely in 2019?
As much as the global crypto industry is looking forward to having a Bitcoin ETF that will potentially bring in more institutional investors, the chances of it happening soon seem unlikely for some reasons.
As we reported earlier, SEC chairman Jay Clayton pointed out that one of the reasons why the commission has not given its consent to a Bitcoin ETF is the fact that the crypto market is still subject to a lot of price manipulation.
In his exact words, he said the until now it is unclear “whether people who hold those assets (Bitcoin) can count on those assets to be there in the same way you can with other assets that underline ETF”. He also mentioned that there is a lack of “reliable price information on (Bitcoin) trading markets and as well as custody”.
In the light of the SEC chairman’s recent comments, an approval seems a little far away.
On a positive note, if the SEC eventually resorts to approving the VanEck-SolidX Bitcoin ETF, then 2019 will almost certainly be the bullish breakout year for the crypto markets with more institutional involvement guaranteed. Bakkt and Nasdaq also have institution-focused Bitcoin Offerings lined up for Q1 2019.
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