The Securities and Exchange Commission has extended the deadline to make a decision on VanEck’s bitcoin ETF (exchange traded fund) application. Due to the bearish attitude of digital asset market, the delay was largely estimated. The decision is postponed until February 27, 2019.
SEC has declared the delay in an announcement stating, “The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change.” Notably, the original proposal was submitted on July 2, 2018.
Before the announcement, VanEck’s director of digital asset strategy, Gabor Gurbacs seemed confident about SEC’s approval of the investment firm’s bitcoin ETF application. He believed that the approval for the same was around the corner.
Gurbacs said that it is reasonably certain that America wants a bitcoin ETF. He added, “We think that we’ve met all market structure obstacles and requirements on pricing, custody, valuation, and safekeeping, so we are cautiously optimistic.”
The SEC has a very strict approach so far, reasonably. Reportedly, in August 2018, the SEC rejected nine applications of Bitcoin ETF, noting the applicants’ inability to demonstrate how they could prevent fraud and market manipulation. Infect, in the past, SEC declined applications from the Winklevoss twins, Tyler and Cameron for bitcoin ETF. Even after the rejection, the Winklevoss twins remain optimistic about the application.
While most crypto space is skeptical about bitcoin ETF, Larry Fink, the CEO of BlackRock has expressed his views in this. He said that the firm would not launch a bitcoin exchange-traded fund until crypto becomes “legitimate.” He stated, “I wouldn’t say never — when it’s legitimate, yes.”
Fink added “It will ultimately have to be backed by a government. I don’t sense that any government will allow that unless they have a sense of where that money’s going.”
Because of its decentralized nature, Fink said that he is concerned about the possibility of scams, money-laundering, and tax evasion, considering the fact that crypto market is anonymous and largely unregulated.