The US SEC now has 45 days to deliver an initial decision to approve or deny the VanEck Bitcoin ETF application or extend the review period.
March 18, 2021 | AtoZ Markets – The US Securities and Exchange Commission (SEC) will decide on the application of the investment company VanEck to launch an exchange-traded fund (ETF) based on the first cryptocurrency within the next 45 days.
The regulator can either approve or reject the company’s request or extend the review period to 240 days. Stakeholders will have 21 days to submit comments.
In addition to VanEck, WisdomTree, NYDIG, Bitwise, and Valkyrie Digital Assets have applied for the launch of the Bitcoin fund. At the time of writing, the commission has rejected all requests, citing, among other things, the potential for price manipulation.
Expectations for Bitcoin ETF approval have risen after US President Joe Biden nominated ex-CFTC chief Gary Gensler to chair the SEC.
Earlier, the founder of the crypto bank Galaxy Digital, Mike Novogratz, predicted that the regulator would approve a Bitcoin ETF in 2021.
Galaxy Digital has already launched a similar investment vehicle in Canada with CI Global Asset Management.
What is more, the asset management company Grayscale Investments has opened nine vacancies with a mention of the exchange-traded fund.
At the end of February, Grayscale Bitcoin-based trust with assets of $39.7 billion began to trade at a discount. Arcane Research analysts saw this as a sign of increased competition.
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