U.S. SEC stalls VanEck-SolidX Bitcoin ETF approval; BTC plummets
Bitcoin ETFs cannot seem to catch a break with the U.S. financial regulator. According to a notice issued by the U.S. Securities and Exchange Commision, the regulator has extended the deadline for approving the Bitcoin ETF – VanEck SolidX Bitcoin Trust.
The Cboe BZX Exchange had filed an application with the SEC in June, proposing a change in regulation that would allow the listing and trading of SolidX Bitcoin Shares, which would be issued by the VanEck-SolidX Bitcoin ETF.
The notice stated that as of August 6, the SEC had received more than 1,300 comments from the public regarding the Bitcoin ETF application under review.
“The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change,” the SEC said in a statement.
The deadline for approving the proposed Bitcoin ETF has now been extended to September 30.
SEC nod for Bitcoin ETF expected, but decision will take time
A lot of crypto enthusiasts are still holding out hope for a Bitcoin ETF approval, but expect the financial regulator to take its time in giving its seal of approval.
According to a recent research report published by Canaccord Genuity, many in the cryptocurrency community expected the regulator to extend the deadline for a decision on the VanEck SolidX Bitcoin Trust.
In the report, Canaccord said, “…although the VanEck SolidX Bitcoin Trust, seen by many as the most formidable candidate for a potential approval, is due for a potential decision as early as this month, it is largely believed that the SEC will extend its deadline, in which case a decision may not be made until March 2019.”
Last month, the SEC had rejected the proposal of a Bitcoin ETF submitted by the Winklevoss Twins, which led to a sharp decline in Bitcoin [BTC] prices to well below $8,000.
Bitcoin, which has been stuck in a downtrend this month, experienced a sharp drop in its price. At the time of writing, the crypto had slid below the $6,710 mark. The coin will likely fall further, as the cryptoverse takes in account this new development.
As of 2057 GMT, the world’s most valuable digital asset slipped 0.7 percent against the U.S. dollar to trade at $6,883.24. The virtual currency was earlier trading in the green, before the SEC announcement came to light.
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