SEC again postpones decision on VanEck bitcoin ETF

The U.S. Securities and Exchange Commission (SEC) continues to drag

its feet on whether to approve a bitcoin ETF. Sponsored Sponsored The

SEC filed a notice on Sept. 8 that it had set Nov. 14 as the date to approve or reject a proposed rule change. This one will allow for the listing and trading of shares of the VanEck Bitcoin fund.

There was little explanation given for this latest round of delays.

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Beyond some jargon regarding the issues raised in the comment letters

:

Commission believes a longer period is appropriate. In it, an order approving or disapproving the proposed rule change should be issued in order to have enough time to consider the proposed rule change and the issues raised in the comment letters filed in connection with it.

Cryptocurrency ETFs further

down the road

The Chicago Board Options Exchange’s (CBOE) BZX exchange has proposed a rule change to allow bitcoin

ETF shares to be listed on March 1, 2021. The SEC waited until April 28 before announcing its first postponement. And then it invoked the Securities Exchange Act of 1934. That gave it 180 days to make a decision.

That deadline was to expire on Sept. 15, so the financial regulator asked for another 60 days to delay its decision.

The delay game has been going on for two years. Ever since the CBOE first teamed up with VanEck and SolidX to file a rule change with the SEC. VanEck and SolidX filed for a “restricted” BTC fund in September 2019 that would only be available to a very small group of established financial firms.

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The original Bitcoin ETF application filed by these two firms goes back even further, to June 2018

. That was withdrawn the following year after more stonewalling by the SEC in favor of a restricted fund.

VanEck tried again in December 2020 with another Bitcoin fund application, which the SEC placed on permanent back burner. In August 2021, VanEck filed an application to list an Ethereum futures fund, but withdrew it

just days later. The

Long Wait

In light of the regulator’s recent threats of legal action against Coinbase

, it is unlikely that the cryptocurrency ETF product will be approved this year or under the current anti-crypto administration.

In early August, SEC Chairman Gary Gensler said he expected more cryptocurrency ETF filings before

he added:

I look forward to staff’s review of such filings, especially if they are limited to these CME-traded bitcoin futures.

Given the recent repeated postponements, this statement seems to be nothing more than heating up the atmosphere even more.

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