Both Bitwise and VanEck/SolidX must continue to wait as the U.S. Securities and Exchange Commission (SEC) delays decisions on their proposals to introduce Bitcoin-based Exchange Traded Funds (ETFs) on U.S. exchanges.
The SEC has once again shown that it is either unable or not yet prepared to make a decision on a Bitcoin-based ETF.
Yesterday the SEC announced it would push the VanEck/SolidX decision to May 21 of this year, giving itself time to “approve, disapprove, or institute proceedings to determine whether to disapprove the proposed rule change.” The commission also moved the decision on the Bitwise Bitcoin ETF to May 16.
The VanEck/SolidX Bitcoin ETF proposal was first filed in June 2018 with the Cboe BZX Exchange and submitted to the SEC. On August 7, 2018, the SEC delayed its decision on a rule change that would allow a Bitcoin ETF. On January 23 of this year, that proposal was voluntarily withdrawn by the Cboe BZX Exchange due to the U.S. government shutdown triggered by President Trump. A few days after the shutdown ended, VanEck and SolidX resubmitted the same proposal on January 31 seeking the same rule change.
The Bitwise ETF proposal was filed with the SEC on January 10. It requests the same rule change as the VanEck/SolidX filing so that Bitwise could list a Bitcoin ETF on NYSE Arca. There are some differences between the proposals, and Bitwise previously appeared to believe its application had a higher chance of approval. For now, however, that advantage does not seem to have materialized.
In its official statement regarding the Bitwise Bitcoin ETF, the SEC explained:
The Commission believes it is appropriate to provide additional time to consider this matter with respect to the proposed rule so that it has sufficient time. […] Accordingly, pursuant to Section 19(b)(2) of the Act, the Commission designates May 16, 2019, as the date by which the Commission shall either approve or disapprove.
At least for now, it appears VanEck/SolidX and Bitwise are in the same boat.
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