True to many crypto pundits’ predictions, the U.S. Securities and Exchange Commission (SEC) has once more decided to delay their decision to either reject or approve the long-awaited Bitcoin ETF from Bitwise and NYSE Arca.
Many crypto enthusiasts had foreseen this outcome with one Jake Chervinsky, for instance, tweeting “reminder that the SEC has deadlines this Thursday & next Tuesday to approve, deny, or delay its decisions on the Bitwise & VanEck bitcoin ETF proposals. My best guess at the probabilities: – Delay, 90% – Denial, 9% – Approval, 1% Delay means new deadlines on August 14 & 19.”
Well, his predictions were right on the mark and the SEC has withheld its decision on the Bitwise EFT.
The Race for The Bitcoin ETF
The existence of a SEC approved crypto-based Bitcoin ETF has become that Holy Grail many crypto analysts believe will imbue crypto with creditability and respectability that the regulatory agency gives to fiat. More so, an approval would usher in a new wave of institutional investors who have for ages been kept at bay by the lack of regulation prevalent in the current crypto market.
As many as nine industry players have sent their applications to the SEC and have had all of them denied. The denials have only worked to fan the flame as companies salivate at the money-making potential the first approval from the SEC will bring to whichever company pulls it off.
The very latest ETF approval application is from the Crescent Crypto Index Services LLC and is sponsored by the United States Commodity Funds. The ETFs, however that have been making headlines in the crypto sphere is, of course, the Bitcoin ETF from Bitwise Asset Management in collaboration with NYSE Arca. Their announcement expected in March was postponed to May, and the final verdict as has been mentioned has been delayed once more.
Prices Hold Steady Despite the Bitcoin ETF Approval Delay
Most officials within the SEC and other experts in the space think that the SEC will do the approvals in time. Robert J. Jackson Jr, a SEC commissioner, has, for instance, said that “Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so.” Hester Peirce, another commissioner at the SEC, has also been quoted saying that “From my perspective, we need to be mindful of what our role is, and it’s not to be the ones who decide which innovations and which technologies get through and which ones don’t.”
The U.S. Securities and Exchange Commission’s further delayed judgment signals that it is still doubtful about Bitcoin’s resistance to price manipulation. There are other concerns the SEC has put at the table, regarding the Bitcoin ETF and the SEC is taking five weeks to solicit public comments on the matter.
The SEC says of its review process that “it is a mechanism that allows the SEC Staff to gather expert input from the public on specific issues surrounding various proposals while extending the statutory time within which the Staff is required to either approve or disapprove the request.” Following the SEC announcement, Bitcoin rising prices have held steady, and most optimists are holding on to the hope that bull run will stay en route.