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SEC Delays Decision on Two ETF Proposals

March 30, 2019
James Hall


SEC Delays Decision on Two ETF Proposals

The United States Securities and Exchange Commission (SEC) has postponed the time it has to make a decision on the Bitwise ETF and VanEck/SolidX ETF, as reported by Nikhilesh De of Coindesk.

When applying for an ETF, the SEC has 240 days to approve or reject an application upon receiving it. It has, however, extended its deadline 45 days for the Bitwise ETF, meaning the SEC will “either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change” by May 16, 2019.

The VanEck/SolidX proposal was originally filed over a year ago. The application, however, was pulled during last year’s partial government shutdown and resubmitted on February 20, 2019. The SEC extended this application as well. This, moreover, would designate May 21, 2019 as the date the SEC must make a decision on this ETF application.

With each ETF comes stronger speculation of an eventual approval. In an interview with Roll Call this February, the SEC Commissioner Robert Jackson added to this speculation when he said, “Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so.”

Talking to Coindesk, Attorney Jake Chevinsky of Kobre Kim law firm believes that “it’s entirely possible that another [10] months of development in the cryptocurrency ecosystem could be enough to finally warrant approval of a bitcoin ETF.”

While many are pushing to establish the first U.S. approved bitcoin ETF, many prominent bitcoin advocates do not like the idea. For example, the Bitcoin Center previously reported on Andreas M. Antonopoulos’ view on the matter. In his popular “Bitcoin Q&A” YouTube video blog Antonopoulos stated, “ETFs fundamentally violate the underlying principle of peer-to-peer money, where each user is not operating through a custodian, but has direct control of their money because they have direct control of their keys. Your keys? Your bitcoin. Not your keys? Not your bitcoin. An ETF is a multi-billionaire dollar ‘not your keys, not your bitcoin’ vehicle.”