The Securities and Exchange Commission (SEC) is once again delaying its decision-making process regarding new bitcoin-based exchange-traded fund (ETF) applications.
The SEC Cannot Seem to Make a Decision for Anything
This has been going on for years now. The SEC does not seem capable of making a choice regarding such a product. It just delays, delays, and delays some more, and right when you think a final decision is going to be made, the agency puts things off again. Since 2017, the firm has been getting applications for bitcoin and crypto ETF applications on its desk, and each time, the SEC has found a way to avoid the situation.
At the time of writing, there are approximately four new bitcoin ETF applications waiting in the wings. They are for the Global X Bitcoin Trust, Kryptoin Bitcoin ETF, Valkyrie XBTO Bitcoin Futures Fund, and WisdomTree Bitcoin Trust. All have been pushed back by roughly 45 days or more. Thus, the SEC is not planning to move forward on any of the set applications until November at the earliest.
In a statement, the SEC announced:
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 any comments.
The agency has stated that it is looking to make an official decision regarding the Global X Bitcoin Trust by November 21. It will make a final decision regarding Valkyrie XBTO on December 8, while Kryptoin and WisdomTree will likely be decided by December 24 and December 11, respectively.
While the SEC has not said no to such products, the process of waiting and waiting for something to get done is becoming rather annoying, and for many crypto enthusiasts, enough time has been wasted. So much so, that the United States is seemingly falling behind. For example, the country’s neighbor to the north – Canada – has already unveiled two crypto ETFs over the past several months, one based on bitcoin and the other Ethereum. In addition, several similar products have been unveiled in Europe.
Some Minor Moves Forward?
Gary Gensler – the head of the SEC – also announced not too long ago that he was open to the idea of bitcoin or crypto-based ETFs, though he made it clear he felt the products should be based on futures. This rubbed many digital currency traders the wrong way, who claimed that futures were inferior products. They also said this would place crypto ETFs under a mutual fund law from the 1940s – something they felt would be completely inappropriate.
On a side note, back in September the SEC announced that it was pushing back its decision-making process regarding the new Van Eck Bitcoin Trust by roughly 60 days, meaning the SEC would not be making a move on the product until mid-November at the earliest.