Come April 5th, 2019, the U.S. SEC will have to state their stance to either approve, deny or extend the decision-making period on Cboe VanEck Bitcoin ETF. What can be expected?
February 20, 2019 | AtoZ Markets - The U. S. regulator, the Securities and Exchange Commission (SEC) says it will commence the countdown of 45 days to the approval or disapproval of the two Bitcoin exchange-traded fund (ETF) on February 20.
As per the report published on Feb. 19, the Bitcoin ETF proposal submitted (for a second time) by VanEck and the Cboe will be formally published in the Federal Register Wednesday, meaning the SEC has until April 5th, 2019 to make their decision to either approve, reject or extend the Bitcoin ETF.
The VanEck proposal was initially filled in 2018, however, the companies decided to withdraw it due to the U.S. government shutdown which happened in January. Now, they refilled for the Bitcoin ETF on the SEC's website on February 13.
It is worthy of note that the VanEck proposal will not be alone as the SEC has kicked off last week, the same type of review period for Bitcoin ETF proposal filed by Bitwise Investment Management and NYSE Arca exchange.
What Will It Take To Approve Bitcoin ETF?
If the Bitcoin ETF proposal gains the approval of the SEC, it could potentially bring sufficient liquidity into a Bitcoin market which is already showing signs of recovery. However, it could still take a couple of months before the SEC can reach a final decision on ETF.
While the formal comment period has not officially started yet, the VanEck proposal is already receiving feedback on the project. The filing’s first response was from Sam Ahn at Hana Trading. He has asked both companies how they define the intrinsic value of Bitcoin.
The question of intrinsic value seems like an issue since Ahn believes that most investors will want to know this before they actually invest their money in the Bitcoin ETF of these companies. In fact, this is the main problem the SEC has with the ETF as the agency is not yet convinced that the Bitcoin market is stable since it has several concerns about price manipulation and speculation.
This, however, the agency believes could actually be bad for the ETF proposal. While the SEC is not completely kicking against the idea, its commissioners are treading cautiously because of the repercussions that might result if they approve the Bitcoin ETF.
Nevertheless, we will all have to keep our fingers crossed and see if the SEC will give a surprising approval to the Bitcoin ETF soon.
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