Those who were awaiting a decision on VanEck’s Bitcoin Exchange Traded Fund (ETF) application may have to wait longer to get a response.
The US Securities and Exchange Commission has exercised its right to postpone its planned decision on VanEck’s ETF application from May 3 to June 17. This emerges from a submission published by the Commission on Wednesday.
VanEck was a leader in tracking a Bitcoin ETF product in the US. The company’s move was unfavorable as the US rejected every ETF application submitted prior to that point. VanEck reapplied back in March, and the SEC replied, claiming that it would take more time to review the application.
“The Commission believes it appropriate to establish a longer period of time for action to be taken on the proposed rule change to allow sufficient time to review the proposed rule change and the comments received,” said SEC Assistant Secretary J. Matthew DeLesDernier, on filing.
The SEC can postpone the review process for up to 240 days in total. If this extended deadline is applied to VanEck, the company may not receive a final response until mid-November.
The case for a Bitcoin ETF
There are more than 8 Bitcoin ETF applications that need to be approved by the SEC. Well-known companies that have submitted their application include Fidelity Investments, which submitted their application back in March.
With the price of Bitcoin rising remarkably this year and institutional funds continuing to pour into the digital asset, market players are pushing for the SEC to soften its stance and introduce exchange-traded fund products in the US. This will further encourage mainstream adoption of the cryptocurrency and push for better regulations for the industry, according to market players.
While Canada has outperformed the US in its Bitcoin ETF approvals, many believe that with Gary Gensler as the new SEC chairman, cryptocurrency regulations may be able to be reshaped and addressed more quickly.
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