In its Wednesday filing, the Securities and Exchange Commission delayed its decision on the VanECK Bitcoin Trust’s application for Bitcoin ETF again. The regulator was supposed to pass the judgment on the VanEck Bitcoin Trust in June, but the SEC decided to delay it again by 45 days and seek public comments on it.
The further delay will likely result in frustration within the US crypto community. The SEC has up to 240 days to deliver a judgment on any application it receives, and hence, the US crypto community may have to prepare itself for even more delays.
Many believed that the change in the SEC leadership may ease the process of Bitcoin ETF application, as the new chairman Gary Gensler has extensive knowledge of digital assets. The reality has so far been different than what many crypto enthusiasts expected; after Gensler took the reins of the SEC in April, the Commission continued to express its concern with the lack of oversight with the exchanges.
The SEC’s Concerns
The SEC has remained skeptical since the first attempt to launch an ETF in 2013. However, their global counterparts have proved to be more optimistic in this regard, and thus, they have allowed multiple Bitcoin products onto their markets. For example, investors from the United States’s neighboring country Canada are already investing in Bitcoin ETFs.
In VanEck’s case, the SEC has asked for public help in its Wednesday filing and is awaiting a response. Citing VanEck Bitcoin Trust’s Bitcoin ETF application, the SEC listed some key questions and set the deadlines in July/August 2021. The key concerns of the SEC are:
- Whether the trust and shares associated with the ETF would suffer from manipulation?
- Will Cboe’s proposal to set up a Bitcoin ETF could help prevent fraud and manipulation?
- Is Bitcoin transparent?
- How have the regulations within the crypto space changed in the last 3-4 years?
- Views on the CME’s Bitcoin Future Contracts
Does the Speculation & Manipulation By Influential People Worry the SEC?
Since the beginning of 2021, the crypto space has witnessed a series of pumps and dumps. Some were genuine as they were caused by positive or negative developments within the industry, yet some were man-made.
The most recent Bitcoin “manipulation” involved one of the world’s richest men, Elon Musk, and he made headlines worldwide for it. Elon Musk’s Twitter mentions caused BTC prices to soar, whereas his negative tweet dragged BTC prices nearly 50% down. Moreover, he also did a similar play with his favorite meme token Dogecoin.
The SEC earlier had clearly stated that it would consider approving a Bitcoin ETF if it showcases a sense of stability, eliminating its infamous volatility, but the recent volatile market may have made the SEC wary of approving Bitcoin ETFs.
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