Market insiders had already read that, while VanEck seemed to have been expecting the opposite, and The SEC argues that the postponement comes in favour of a better study.
December 07, 2018 | AtoZ Markets -In a piece of expected news, the Securities and Exchange Commission has announced delaying its decision on VanEck’s bitcoin ETF (exchange-traded fund) application until February 27, 2019.
The SEC sees it is wiser not to rush in making its decision, for studying the case from different angles.
“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change,” the SEC said in its announcement on December 6.
In his turn, Gabor Gurbacs, VanEck’s director of digital asset strategy, had just expressed his optimism regarding a positive decision to come from the SEC, a few hours prior to the surprise, where he reflected that SEC’s approval on his bitcoin ETF application was quite close to be a reality.
“It’s fairly certain to us that America wants a bitcoin ETF… We think that we’ve met all market structure obstacles and requirements on pricing, custody, valuation, and safekeeping, so we are cautiously optimistic.”, Gurbacs’s words came before postponing decision was announced.
SEC’s approval is not an apple pie, but big names could get through
It is no secret though to tell that the SEC has been following a very strict policy in its regulatory line over the last and on-going year, where the news brought to the public many incidents, in which the U.S watchdog either postponed making judgments on the applications it received, or furthermore, turning down those applications.
The SEC explains that it requires more security measures to be taken in such projects, for rather guaranteed protection of the consumer, where it recently said that it could approve Bitcoin ETF, should latter was accompanied with "better surveillance and custody".
Last August, the agency rejected nine applications for Bitcoin ETF, for reasons mostly concentrated on the failure those applicants where said to have demonstrated in proving they were equipped with the tools needed for preventing fraud and market manipulation.
One of the prominent names in the market, whom their bitcoin ETF applications were rejected by the SEC was the Winklevoss twins, Tyler and Cameron, who are the founders of the well-known cryptocurrency exchange Gemini, as the media reported last June. Still, the aforementioned twins remained optimistic that the approval on their application would be just a matter of time.
The market is said to still have controversy regarding whether bitcoin ETF is a thing that will make any contribution to the cryptocurrency space or not.
In a similar context, AtoZ Markets reported not so long ago, that Nasdaq had made its mind to release its Bitcoin BTC Futures in the upcoming half of 2019.
The second giant exchange on a global scale has always argued that it has solutions for the manipulation that is taking place in the cryptocurrency market, where it said: ““Regulators, brokers, and exchanges have surveillance teams that monitor activity constantly and advanced technologies to help capture and analyze abusive behaviors including pump-and-dump schemes, insider trading, wash trading as well as spoofing and layering.”
It is worth mentioning to remind that the giant exchange was given a patent on 23 of last October, for Blockchain Information Sharing Platform, which addresses the "audit trail gaps" during sharing time-sensitive information.