The Securities and Exchange Comission (SEC) which plays the role of a crypto-regulatory body in the United States, delayed their approval on two Bitcoin based ETFs. Bitwise Bitcoin ETF Trust and VanEck SolidX Bitcoin Trust have been rescheduled for revision for 15th October and 18th October respectively. Тhe SEC`s decision however, can turn into denial, because of the comments that the regulator made on the listing of the two ETFs.
Bitwise’s ETF has the highest chance of being approved. The ETF aims to track the top 10 cryptocurrencies based on market capitalization. The delay that was reported is not the first occasion of deliberate stalling from the SEC. In May 2019, the crypto regulator announced a new date for approval for the two funds, stating that the decision will be made in August 2019.
ETF proposals like those of Bitwise and VanEck aim to be an indirect way of buying Bitcoin, as the ETFs follow the trend of the underlying asset. Many companies tried to launch a crypto-based ETF, but the SEC rejected them. Both ETFs are in a position of receiving the chance to become issuers of the first ETF, based on cryptocurrencies.
SEC’s primary concerns are price volatility and market manipulations. Bitwise did a number of reports, citing that the market is much smaller than reported, and is under close surveillance by the SEC.
Prior to the delayed announcement, Bitcoin’s price was 3.8% in the red, trading at $11,418. As of press time Bitcoin’s price fell even further to $11,269.44. Trading volumes, however, see a steady decline, which is expected as an outcome. Crypto analysts are sharing opinions that a crypto-related ETF would boost prices of the entire crypto sector and can provide a fresh outlook of the crypto market.