According to a filing, the United States Securities and Exchange Commission has delayed its decision on the VanEck Bitcoin ETF. The approval delay comes as new SEC head Gary Gensler reviews BTC ETF applications. The bitcoin ETF under review would be the first of its kind, giving investors direct exposure to the asset class. Other ETFs focus on giving investors exposure to crypto via stocks of related companies.
SEC is mulling over the potential pitfalls for retail investors.
Many from the crypto community believe that the US SEC is mulling over the potential pitfalls for retail investors stemming from volatility and manipulation. Such a decision is usually made in 45 days, but the SEC needs more time. The filing reads, “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 comments received.”
VanEck filed the bitcoin ETF late last year.
Investment management company VanEck filed the bitcoin ETF late last year, too much excitement from the crypto community. In the filing, it states that “bitcoin has matured” and is similar in “efficiency and scale…to established global equity, fixed income and commodity markets.” Gary Gensler was appointed as SEC Chairman by President Biden in January, and the decision was well-received by the crypto community. The MIT professor has taught courses on blockchain and cryptocurrency and has generally been open-minded about the asset class. Since his appointment, the disposition among the crypto community has mostly been positive. In a more recent report, Gensler said that he would review guidance provided by the U.S. Treasury, which Janet Yellen leads.