It seems that we will have to wait a bit longer for the first Bitcoin ETF in the United States. The US Securities and Exchange Commission (SEC) has again delayed VanEck’s Bitcoin application for a Bitcoin exchange-traded fund (ETF). The ruling is now scheduled for November 14.
Key takeaways:
- Via a notice issued on September 8, SEC has again delayed the ruling for the potential first Bitcoin ETF in the US by another 60 days, moving the decision date from September 15 to the middle of November. The agency says it needs more time before making a verdict.
- The latest delay marks the third time that the regulator has designated a longer period to determine whether the listing of VanEck Bitcoin Trust should be approved. The first delay came in April, followed by the second one in June.
- VanEck filed the application for a Bitcoin ETF in December of last year. Altogether, there are 13 companies that are in the same position as VanEck, which are eagerly awaiting the SEC’s decision.
- SEC has repeatedly denied Bitcoin and cryptocurrency ETFs, citing concerns over the potential for price manipulation as the main reason.
- The approval of Bitcoin ETF in the US is highly anticipated. The lack of the popular financial instrument severely limits investing options for corporate investors. There is some speculation that BTC ETF could be a strong rival to Gold ETF, for investors that are looking for alternative store of value options.
- The approval of Bitcoin ETF in the US could see similar success as in Canada in February 2021. Over the course of one month, the Purpose Bitcoin ETF, the first-ever ETF in Canada, managed to reach $1 billion mark in assets under management (AUM). At the time Purpose Investments CEO Som Seif said: “Hitting this milestone so quickly proves that investors are seeking convenient, safe access to cryptocurrencies.”
- Given the recent developments pertaining to cryptocurrency regulations in the US (infrastructure bill introducing controversial crypto rules, SEC treating to sue Coinbase), it seems somewhat unlikely that any of the current Bitcoin ETF applications will be approved during the tenure of the current administration. It would be great to be proved wrong though.
