The Securities and Exchange Commission (SEC) is scheduled to make its decision regarding 9 separate Bitcoin exchange-traded funds (ETFs).
A Little History on the SEC and Bitcoin ETFs
The scenario has been one of confusion and possible misrepresentation.
It was first reported in August that the SEC was set to review 9 Bitcoin ETF applications that had been previously rejected due to the Commission delegating specific tasks to its staff members. The employees had apparently dismissed the Bitcoin ETF submissions, but the SEC’s rules allowed it to review these rejections in full to ensure they were handled carefully.
Following the announcement that the organization was again reviewing the rejected applications, it was widely reported that a new decision date had been set for October 26, 2018.
This, however, was misinformation, and it appears that November 5 was the final day for all concerned parties to leave comments regarding whether the ETFs are worthwhile.
The SEC has previously stated:
Accordingly, it is ordered, pursuant to the Commission Rule of Practice 431, that by November 5, 2018, any party or other person may file a statement in support of, or in opposition to, the action made pursuant to delegated authority.
Everyone Wants a Bitcoin ETF
The notion of a Bitcoin ETF has been swirling around the heads of crypto enthusiasts for more than a year. According to most analysts, the application submitted by the joint venture VanEck SolidX likely has the most chance of garnering approval. However, even this one has a rocky history behind it.
The company first submitted their proposal for a Bitcoin ETF back in March 2017. It was followed by a speedy rejection from the SEC, and it took several other attempts to get the organization’s attention.
By the third time, the SEC did not outright reject the company’s application, but instead decided to consider the possibilities behind it. It spoke with industry professionals and posted the application for public comment to better understand its benefits and whether it could entice public traders.
The application garnered positive acclaim and reactions from commenters and reviewers, though the SEC’s decision regarding whether to approve the ETF was later postponed to September 30, 2018 from its previous August date. Since then, the decision has been postponed again to late December.
The Delay Could Be a Good Sign
While it may seem easy to be discouraged by the dragging out of such activity, one needs to remember that the SEC, in all this time, isn’t dismissing the ETF. It is carefully considering the circumstances and trying to gain as much knowledge and information as it can regarding its prowess and abilities in the crypto space.
The fact that the SEC is taking this much time with the application can be considered a very good sign.
Other Bitcoin ETFs haven’t been so lucky. Headlines reported a few months ago that the Winklevoss Twins of the Gemini Exchange in New York also applied for a Bitcoin ETF, though their application earned no valid consideration from the governing body, and the SEC provided the twins with a flat-out stamp of disapproval.
In the meantime, official decisions regarding the 9 current ETF applications are likely to arise sometime after today.