Still No Approved Bitcoin ETF? Here’s the Reason behind..By May 22, 2019 1 Min Read
The U.S. Securities and Exchanges Commission (SEC) decided to delay the proposal from VanEck bitcoin (BTC) exchange-traded fund (ETF) and added a 35 days period for more information gathering and research on the proposal, the official SEC filing on 20 May.
SEC lists out 14 questions in the filing to seek public’s opinion on the proposal, which can be useful to help SEC reach the verdict. The Commission requires additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,’ and ‘to protect investors and the public interest.’
“It is clear the SEC is still in information gather mode” Dave Nadig, managing director of ETF.com told CNBC on May 20.
Nadig further explained his view by arguing that although he thinks ETF will be approved eventually, but he believes the approval process can take at least a quarter when regulators will get more comfortable as the crypto market matures.