SEC hold-ups decision on authorizing bitcoin ETF.
The Securities and Exchange Commission on Wednesday delayed its choice on approving the VanEck Bitcoin ETF till June as the regulator's brand-new chief starts to review prominent property applications.
The SEC generally takes 45 days from when an application is submitted to render a decision on whether such a security need to be allowed to trade. The 45-day window for the VanEck Bitcoin ETF ends May 3, however the SEC is extending the deadline.
"The Commission discovers that it is appropriate to designate a longer period within which to take action on the proposed rule modification so that it has enough time to consider the proposed guideline modification and the remarks received," J. Matthew DeLesDernier, assistant secretary at the SEC, said in a filing.
While bitcoin ETFs exist in the U.S., they do not directly own the cryptocurrency. They own portfolios of stocks deemed to have direct exposure to blockchain technology. Some bitcoin watchers believe 2021 could finally be the year a bitcoin ETF is approved thanks to the Senate's confirmation of Gary Gensler to lead Wall Street's top regulator.
Gensler, authorized by the Senate earlier this month to lead the SEC, is considered an expert on cryptocurrency and has taught courses on digital currencies and blockchain at the Massachusetts Institute of Technology.
Questioned in March on how the SEC need to control bitcoin and other digital properties, Gensler told legislators that the duty might fall across the federal government depending on how possessions such as bitcoin are categorized.
In the past, the SEC stated it was worried about severe price volatility and fraud in cryptocurrencies. It likewise kept in mind that 75% of bitcoin trading happens overseas on unregulated foreign exchanges that could be controlled.
The price of bitcoin and other digital possessions has skyrocketed in 2021 as an increasing variety of investment managers and banks grow comfortable considering it as both a possible financial investment chance and a medium of exchange.
Though the world's largest digital possession has actually struggled in current weeks, its existing price around $54,400 is far above where it traded one year ago under $10,000, according to Coin Metrics.
Following VanEck, Fidelity in March disclosed in a federal government filing that it's working to release its own bitcoin ETF.
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