The Securities and Exchange Commission (SEC) has more on its table than it can attend to. After rejecting the Winklevoss ETF proposal recently, it has to tackle another batch of nine proposals, all of which are related to derivative trading in Bitcoin. These ETFs will help in creating regulated sectors within the digital currency markets. However, SEC seemingly still has doubts about how these products will work.
Delayed Decisions Do Not Help Anyone
As soon as the crypto world realized that the agency could be making some strong decisions about Bitcoin ETFs, market demand soared, and prices of Bitcoin jumped above $7,500 in expectation of positive news. Unfortunately for the crypto community, a proposal by Gemini exchange operators, the Winklevoss twins, was rejected.
Another important proposal is still pending, which helped in keeping their hopes high. This is Cboe BZX Exchange’s proposal to allow shares of VanEck SolidX Bitcoin Shares issued by the VanEck SolidX Bitcoin Trust to list and trade on the market. However, on Tuesday, SEC thwarted those hopes by delaying the decision for almost another two months. Bitcoin tanked on this news and several other cryptocurrencies followed its lead.
The Cboe proposal is the only one that offers a “physical” ETF to users. However, regardless of the type of proposals, the agency’s quick decisions will be helpful. It appears prima facie that the financial regulator isn’t too keen on letting the markets lose.
Per its most recent notification, it had to publish its decision on the ETFs within 45 days of publication of the proposal in the US Federal Register. However, it has now taken the liberty to extend it until September 30.
What Can Be Expected From SEC?
The financial watchdog may not be able to decide on any of these funds as quickly as we may expect. It is likely that the decisions would be pushed as far as Q1 next year.
SEC stated its reason for the delay in the decision on Cboe’s application. It said it needed enough time to consider the proposed rule change. It is likely, therefore, that the agency wants to tread very carefully in uncharted waters.
Meanwhile, SEC previously sparked some controversy when one of the Commissioners suggested that the regulator rejected the Winklevoss ETF even though it matched all the requirements laid out by the agency.
For now, the crypto community can continue to thrive in anxiety.