The US Securities and Exchange Commission (SEC) on Monday, August 12, postponed the decision on three applications for the launch of exchange-traded investment funds (ETFs) based on bitcoin. It is reported by CoinDesk.
Compiled jointly with NYSE exchanges Arca and Cboe BZX, applications from asset managers Bitwise Asset Management, VanEck / SolidX and Wilshire Phoenix suggest the launch of the first US regulated ETFs. These applications were published in the Federal Register in February and June and from that moment the Commission has 240 days to make a final decision.
The final deadlines for deciding on Bitwise and VanEck / SolidX applications are October 13 and 18, respectively. Wilshire Phoenix’s decision will be made on September 29th.
Over the past few years, various companies have sought approval from the SEC to launch exchange-traded funds, but each time the regulator refused. Most often, the reasons for the negative decision were explained by the risks of market manipulations and insufficiently developed market control tools.
Trying to dispel the doubts of the SEC, Bitwise has published several reports that say that, contrary to popular belief, the real Bitcoin market is not so large, to some extent transparent and quite effective, if you do not take into account some exchanges with fake trading volumes.
Also note that the Bitwise ETF proposal has received support from more than 30 well-known industry representatives, including Blockchain Capital, Castle Island Ventures, and Coinbase Custody.
It is noteworthy that this time Bitcoin did not react at all to the negative decision of the SEC – the price remained clamped in a narrow side:
It is possible that most market participants have come to terms with, as a rule, negative SEC decisions. Nevertheless, if the Commission accidentally approves at least one of the applications in the fall, there may be a sharp revival in the market.
Recall, according to some sources, the SEC can classify the Libra project from the largest social network Facebook as an ETF.