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SEC Postpones the Decision on WisdomTree Bitcoin ETF Application

Annie Li   Jun 03, 2021 04:50 2 Min Read


   

The U.S. Securities and Exchange Commission (SEC) has postponed the listing application of WisdomTree's Bitcoin Exchange Traded Fund (ETF) from May 30 to July 14. The regulator also has postponed VanEck’s ETF application until June 17.

The SEC exercised its authority by postponing the listing date when initially scheduled for May 30 to July 14, according to a filing released by the Commission on May 26.

Generally speaking, it takes 45 days for financial regulators to make a preliminary decision on whether to approve an ETF. But the SEC also has the right to extend the review period up to 240 days.

In the official SEC report, The regulatory watchdog will extend WisdomTree's application review for another 45 days, stating that:

"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."

In late May, WisdomTree submitted an Ethereum ETF application. ETH, the second-largest cryptocurrency based on market capitalisation, was up by 3.85% in the last 24 hours to trade at $2,719.78, according to CoinMarketCap. During the intraday, Bitcoin was trading at $37637.89.

The SEC regulations have so far rejected all proposals to securitise Bitcoin in an ETF due to its nature of extreme volatility and concerns associated with price manipulation. However, proponents of the leading crypto asset believe that the uncertainty is about to change as Bitcoin is turning mature as an asset class.

More than eight Bitcoin ETF applications are currently awaiting approval from the US SEC to offer Bitcoin ETF. These US firms include Fidelity Investments, VanEck Associates Corp, NYDIG asset management firm, Valkyrie Digital Assets, WisdomTree Investments, and Anthony Scaramucci-led SkyBridge Capital firm.


Image source: Shutterstock

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