The United States Securities and Exchange Commission (SEC) has denied countless Bitcoin exchange-traded fund (ETF) proposals from numerous financial institutions. Each time the proposal is denied, it gets pushed back for a later approval date and has slightly better chances of being approved.
As previously reported by IIB, the Chicago Board Options Exchange’s (CBOE) withdrew their Bitcoin ETF proposal and request for a rule change by the SEC on January 22, 2019. This was largely to do with the US government shutdown, which caused the SEC to operate on a limited basis.
However, it appears the CBOE and other institutions are not giving up on a Bitcoin ETF, as they along with investment firm VanEck and financial services company SolidX have resubmitted their joint-rule change proposal to approve a Bitcoin ETF.
— Gabor Gurbacs (@gaborgurbacs) January 31, 2019
The approval of a Bitcoin ETF is highly sought after among members in the cryptocurrency industry, as it could potentially be a giant step forward for the mass adoption of cryptocurrencies as a regulated passive investment instrument.
This is because ETFs are considered securities that track a basket of financial assets from stocks, commodities, and bonds, and include trillions of investment dollars from retirement funds and investors alike. If a Bitcoin ETF is approved, it would solidify Bitcoin as a viable asset class among mainstream investors.
CBOE and NYSE Race for a Bitcoin ETF Approval
The CBOE was previously well into the review process before pulling their Bitcoin ETF application and rule change proposal. However, now that they have resubmitted their rule-change proposal and Bitcoin ETF application, they are in direct competition with NYSE Arca and Bitwise for the SEC’s approval of a Bitcoin ETF.
Just days before the CBOE resubmitted their application, NYSE Arca and Bitwise submitted a Bitcoin ETF proposal, which means the 2 competing exchanges are in a race to launch the first Bitcoin ETF in the United States.
However, both applications have yet to be officially listed in the Federal Register, so technically speaking the race has not started yet. Once they become listed in the Federal Register, the SEC has 240 days to either approve or reject the application.
There are multiple dates throughout the 240-day review process in which the Bitcoin ETFs could get approved, but if this review process is anything like it was in the past, these Bitcoin ETFs will be denied each time, and people will be eagerly waiting until the final date.
Do you think the SEC will approve a Bitcoin ETF in 2019? Will they constantly push back their decision until the last possible date? Let us know what you think in the comment section below.