The US Securities and Exchange Commission (SEC) has delayed its decision on the Bitcoin ETF application that would allow Cboe BZX Exchange–VanEck SolidX Bitcoin Trust to launch their cryptocurrency derivatives on self-regulatory markets.
In a recent notification, the Commission said that it deems it suitable to take some more time before finalizing its decision. While markets had responded positively to the news of ETF generation, the delay sent Bitcoin prices tanking, which reached $6,500 after the news became public. Forty-nine out of the top 50 currencies in the market accepting Tether witnessed major losses too.
What Does the Notification Say?
The Commission noted that it would take some more time for it to ponder on the proposed rule change filed by Cboe BZX Exchange, which will allow shares of VanEck SolidX Bitcoin Shares issued by the VanEck SolidX Bitcoin Trust to list and trade on the market.
The notification reads:
“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 proposed rule change that will bring Bitcoin derivatives to the regulated market was published on July 2 and added for comment on the Federal Register. SEC said that it had received over 1,300 comments on the proposed rule change as of August 6.
According to Section 19(b)(2) of the Securities Exchange Act of 1934 (the “Act”), the Commission has to come to a decision within 45 days of the publication of the notice on the Federal Register. However, if the Commission deems fit, the period could be extended to 90 days.
As SEC finds it fit to extend the period pursuant to Section 19(6)(2) of the Act, the agency has now until September 30 to decide on the matter.
Bitcoin Sinking Like the Titanic
According to CoinMarketCap, Bitcoin’s value fell by 7.96 percent in the past 24 hours (at press time), and the value fell to $6,315 with the market cap at over $109 billion. Of the top 10 cryptocurrencies, only Tether stayed in the green zone. On the other hand, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin and Cardano all showed double-digit negative numbers.
Previously, the agency had denied permission to Gemini exchange operators, the Winklevoss twins, to launch their own cryptocurrency ETF — a decision that was contested by one of the agency’s officials.