The U. S. Securities And Exchange Commission (SEC) may decide to take an initial decision on the Bitcoin exchange-traded fund (ETF) tomorrow, February 20. According to reports, tomorrow the Bitcoin ETF will start the new countdown of 45 days to be approved or rejected again. The VanEck, SolidX and Cboe proposal will be formally published on the SEC’s register by then.
This proposal was initially posted last year, but the companies decided to withdraw it during the government shutdown, which happened last month. Now, the refiled for the Bitcoin ETF on February 13.
As soon as the filing is accepted, the timer will start and the SEC will have to decide once more about the awaited ETF. The VanEck/SolidX proposal will not be alone, though. A proposal made by Bitwise Investment Management and NYSE Arca will also be on the table.
The SEC has 45 days, starting tomorrow, to decide whether it wants to postpone the decision or not. In case the ETF is rejected, the company has to make lengthy changes in order to be able to apply again. Last year, the SEC waited for the 45 days and then postponed the decision.
Because of this, the timer, which would be finished soon, can actually take a lot more time to finally be over and the SEC will be able to postpone the decision even further, which seems like what the regulatory agency wants to do at the time.
What Will It Take To Approve The ETF?
While the process is not officially started yet, the SEC has already given some feedback on the project. Sam Ahn, from Hana Trading, has asked the companies how they define the intrinsic value of Bitcoin, which seems like an issue since Ahn believes that most investors will want to know this before they actually spend their money investing in the Bitcoin ETF of these companies.
In fact, the SEC’s main problem with the ETF has a relationship with this. The agency is simply not convinced that Bitcoin is a stable market and it has several concerns about how the token can be prone to manipulation and speculation.
This, the SEC believes, could actually be bad for the ETF, so, while the SEC is not fully against the idea, its commissioners are still wary of the bad repercussions that the Bitcoin ETF can have.
Some people say that they are waiting for a trustworthy exchange to enter the game before they are able to finally let it happen. Unfortunately, it does not look like Coinbase will be chosen one, but Bakkt, the crypto exchange created by the Intercontinental Exchange (ICE), seems like a sensible option.
We will all have to wait in order to know if the SEC will surprise us all and decide in favor of the Bitcoin ETF so soon or if the waiting is far from being done, which seems possible.