The U.S. Securities and Exchange Commission (SEC) has recently notified the cryptocurrency community that they delayed the decision on whether the VanEck Bitcoin ETF proposal would be approved or not to operate. The final decision will have to be taken on February 27, 2019.
Several individuals and experts in social media believe that this bloodbath in the crypto market is due to the fact that the SEC decided to delay the approval of this ETF.
This proposal made by VanEck is very important since it could be one of the main catalysts for a future bull run in the crypto market. If a Bitcoin exchange-traded fund is approved by the regulatory agency this would be very important for Bitcoin, that would be considered by the SEC as a viable investment asset. Additionally, other crypto-related ETFs would also be approved in the future.
An exchange-traded fund could be approved in February because of different reasons. First of all, MV Index Solutions launched a index called MVIS Bitcoin US OTC Spot Index, which is based on the price reported by OTC trading desks. The companies that will be offering the prices are Circle Trade, Cumberland and Genesis Trading.
With this increased transparency in the price of Bitcoin, it might be possible for the SEC to approve this ETF in February. At the same time, the Intercontinental Exchange will also be launching its physically settled Bitcoin futures contracts. With this increased confidence in Bitcoin among the investment community, a Bitcoin ETF has higher chances of being approved.
It is important to mention, however, that Commissioner Hester Peirce said that crypto enthusiasts should be cautious about the approval of a Bitcoin ETF. The decision has not been made yet and it might not be approved in February. She stated that SEC commissioners must be a majority to approve a crypto ETF.
On the matter, she commented:
“Don’t hold your breath. I do caution people to not live or die on when a crypto or bitcoin ETF gets approved. You all know that I am working on trying to convince my colleagues to have a bit more of an open mind when it comes to [crypto]. I am not as charming as some other people.”
The SEC could be approving a Bitcoin ETF in February. There are several reasons why it can be approved, but the decision has not yet been made, which is why investors must be cautious.