Published: Fri, August 10, 2018
Finance | By Loren Pratt

SEC Postpones Decision on Vaneck Solidx Bitcoin ETF but Previous Concerns 'Resolved'

SEC Postpones Decision on Vaneck Solidx Bitcoin ETF but Previous Concerns 'Resolved'

The SEC have now extended their deadline to the 30th of September 2018, this has been decided in order to give the agency more time to ponder the Bitcoin ETF, in order to explore its effects and of course, in order to explore notions of regulation and other restrictions that could be imposed by the SEC. This is the company's third attempt to get a bitcoin ETF through the SEC's door, and the group has consistently shown that it is either completely unaware of what to do, or simply isn't interested. Therefore, if the SEC accepts a Bitcoin ETF, it would be a positive step forward for the cryptocurrency industry which could even potentially pave the way for the mass adoption of cryptocurrencies. The first date to watch is August 10, which is 45 days since the Securities and Exchange Commission filed a notice on the proposal and when the time in which it would file a response runs out.

Canaccord, the largest investment firm in Canada, has noted that it is unlikely that a Bitcoin exchange-traded fund (ETF) approval is possible this year.

The application was made by VanEck and Solid X and it comes after the SEC's recent rejection of a Bitcoin ETF application made by the Winklevoss twins, Tyler and Cameron.

Following the SEC's latest decision to reject the proposed rule change for a bitcoin ETF, SEC Commissioner Hester Peirce voiced her opinion in an interview with Cnbc on Wednesday. "The last asset class to be approved for ETF certification was copper, and copper has been on earth for 10,000 years", the manager of crypto hedge fund Pantera Capital, Dan Morehead, told CoinGape. The presentation lists as examples CME bitcoin futures, Cboe bitcoin futures, Ledgerx bitcoin swaps and options contracts, and Cantor Exchange self-certified bitcoin swaps contract.

In addition, there has been a "proliferation of information sharing agreements" that were not previously put in place in March past year.

As of press time, the price of bitcoin has not reacted, trading at around $7,060 according to the CoinDesk Bitcoin Price Index (BPI). "A properly constructed physically-backed bitcoin ETF will be created to provide exposure to the price of bitcoin, and an insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin".

What do you think of the SEC postponing its decision on Vaneck/Solidx bitcoin ETF?

Images courtesy of Shutterstock, Solidx, Van Eck, and the SEC.

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