The US Securities and Exchange Commission (SEC) has once again postponed consideration of the application of the investment company VanEck to launch an exchange-traded fund (ETF) for Bitcoin until June 17.
Bitcoin ETF is an investment product that provides institutional investors with access to cryptocurrency without the need to purchase it directly. If VanEck receives regulatory approval, this ETF will be the first in the US. Initially, the SEC was supposed to make the final decision on the VanEck application by May 3, 45 days after the application was registered with the Federal Register. Now the deadline for its consideration has been extended until June 17, but the SEC can “stretch” this period up to 240 days from the date of filing the application.
It is not the first time that VanEck has asked the regulator for permission to launch such an ETF. The company hopes that as the cryptocurrency market develops, the department will reconsider its attitude towards such investment instruments. However, the SEC has reviewed many applications from different companies and has not yet approved a single one.
To date, there are nine applications for the launch of cryptocurrency exchange-traded funds in a “suspended” state. Firms awaiting the SEC’s decision include Kryptoin Investment Advisors and WisdomTree Investments. The main reason for the delays in the consideration of applications and their subsequent rejection is that the Commission fears possible manipulation in the market where ETFs pegged to cryptocurrencies will be traded.
Bitcoin ETFs have been approved by regulators in Canada and Brazil this year. Therefore, many American investors hope that with the arrival of former MIT professor Gary Gensler as chairman of the SEC, the regulator will be more supportive of innovative investment products.
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