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The U.S. Securities and Exchange Commission (SEC) has once again delayed the decision to approve or reject a Bitcoin exchange-traded fund (ETF) by 5 weeks. The decision to delay was announced in a document published by the SEC. The document states that the regulator would hold off on making a decision on the Bitwise ETF proposal filed with NYSE Arca.
The document asked for interested parties to provide public comment in an effort to receive external insight into the matter. The document reads:
“The Commission requests that interested persons provide written submissions of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal.”
Bitwise initially filed for the ETF at the beginning of the year under the condition that the SEC would reach a decision in 45 days. However, the SEC decided to delay its decision in March. After that, the decision was due on May 16; and yet again the SEC opted to delay once again.
The complication with Bitwise’s proposed ETF is that it is different from previous proposals by other companies. Bitwise’s Bitcoin ETF would require “regulated third-party custodians to hold its physical Bitcoin.” The fillings go on to read:
“Having a regulated bank or trust company hold physical assets of a fund have been the standard under U.S. fund regulation for the last 80 years, and we believe that is now possible with Bitcoin.”
The new deadline to review Bitwise proposal has been shifted to an undisclosed date, as the agency needs more time to review the potential rule change further. The crypto markets fell as a reaction to the news. Just a few hours ago, Bitcoin had reached its one-year high in terms of its price. However, after the news of the delay, the Bitcoin’s price dropped below $8,000 again, dropping roughly 5 percent from its intra-day high.
The blockchain technology company SolidX is another company to have filed with the SEC for a physically-backed exchange-traded product in collaboration with the money management firm VanEck. VanEck is the biggest ETF provider based out of New York and their involvement in the matter raised hopes for a favorable decision by the SEC. However, regulators rescheduled the decision in December 2018. Since then, VanEck has shelved its proposal for the coveted Bitcoin license.