The US Securities and Exchange commission (SEC) much awaited decision on submitted Bitcoin exchange-traded-fund (ETF) applications has been pushed forward to mid-May. The decision that was due on March 29 was postponed to a later date when the commission will either give its stance, or initiate proceedings to decide on whether to reject the proposals.
Proposals under review
Among the Bitcoin ETF proposals under review is one authored by Bitwise asset management alongside NYSE Arca published on February 15 and another one filed by VanEck and SolidX, together with Cboe BZX exchange. VanEck/SolidX proposal was published a year ago but later withdrawn in January during the temporary government shutdown. The Proposal was however, submitted for the second time in late January and published on February 20.
As earlier mentioned, SEC postponed the decision making on the two proposals scheduling May 21 as the official day for the decision making. SEC’s vivid coldness on ETFs has attracted lots of backlash from the crypto community who are banking on ETFs to catalyze the development of cryptocurrencies markets.
SEC’s Terrible History with ETFs
SEC is yet to approve any bitcoin ETFs and crypto enthusiasts are positive that it might happen for the first time this year. Down the memory lane, SEC rejected Winklevoss brothers’ bitcoin ETF Coins proposal citing difficulty in regulating and monitoring the digital asset. Back then, SEC’s decision drove bitcoin prices down to $980 from $1,350 although prices skyrocketed again fast.
Last year again, the Winklevoss twins were dealt another blow after SEC turned down Bats BZK Exchange proposal to list Winklevoss Bitcoin Trust this time citing non-satisfactory guidelines to curb fraudulent and manipulative acts and practices that rocks the crypto space.
As to whether the May 21 decision will be favorable, we just have to wait and see. However, to demonstrate the community’s enthusiasm in Bitcoin ETF’s approval, members were carried away by an April fool’s Day gag suggesting that SEC had approved the two proposals under review. In fact, experts are theorizing that the prank might have sparked the recent 23% bitcoin price rise witnessed early Tuesday morning.