The U.S. Securities and Exchange Commission (SEC) extended its decision period for 35 days in order to obtain more information/opinions related to the proposal of VanEck SolidX Bitcoin ETF (Exchange-traded funds).
The said proposal was filed last year by the Chicago Board Options Exchange (CBOE).
Although the CBOE gave up its request for a rule change in January after the U.S. government shutdown, which declined operational capabilities of the SEC, it reapplied at the end of January due to the resolution of the shutdown.
The SEC gathers public reviews by listing 14 questions about the proposal, through which it will benefit from the answers while reaching a verdict.
The questions are specifically regarding protection of investors and public from malicious actions such as fraud. According to the report:
“The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,’ and ‘to protect investors and the public interest.’”
What Happened so Far?
The story of VanEck/SolidX Bitcoin ETF proposal is still a mystery.
A year ago, the application was withdrawn after being delayed on multiple occasions by the US Securities and Exchange Commission (SEC).
However, after the withdrawal, it was submitted again.
On February 20th, the new application was filed and giving the SEC a 90 days to come up with a decision to approve, deny, or delay it.
After 90 days, SEC again delayed its decision on VanEck and SolidX application.
How it Affects the Market?
As it is not rejected, delay can be considered as a new hope for the approval of Bitcoin ETF.
Personally, I believe that a potential approval can easily boost the price and we may see a new ATH (all time high).