SEC Delays Ruling on VanEck/SolidX ETF Proposals

SEC ruling delayed VanEck SolidX ETF cryptocurrency

The Securities and Exchange Commission has deferred ruling on the latest proposals for a bitcoin ETF, in the latest postponement of its kind from the regulator.

The SEC had been due to give a ruling on the VanEck/SolidX proposals, but according to documents filed earlier this week, the regulator will now clear a period for more consultation, soliciting views from the public and responses for a period of 21, then 35 days respectively.

The decision postpones a ruling on whether to approve or reject the proposals to August 19, with the option for a further delay to October 18 if required.

The news is a blow for those who had been hoping the proposals would get the green light, paving the way for the first bitcoin ETF of its kind to be listed on a public exchange.

ETFs allow investors to take indirect exposure to cryptocurrency markets, by purchasing unitary shares in an investment fund, which derived income from cryptocurrency trading.

Successfully used for investment across a number of asset classes, ETFs are regarded as an appealing alternative for investors concerned about the practicalities or regulatory issues around buying and storing cryptocurrency securely.

While approval is considered an inevitability by some in the crypto community, the regulator has so far been unwilling to rubber-stamp any of the proposals laid before it.

Seen as an attractive option for institutional investors, the first ETF approval will be regarded as a significant event in the cryptocurrency world, if and when it does finally happen.

Yet concerns over liquidity, transparency and the potential for market abuse remain, with the SEC so far reluctant to lend its approval to any ETF proposals.

The latest deferral mirrors similar recent decisions by the regulator. In the last few days, proposals from Bitwise were delayed, though the commission has yet to reject any proposals outright as unsuitable.

The deferral feeds into a growing narrative of confusion around regulation in the U.S., with some calling for greater clarity on the law, including Democratic 2020 presidential candidate Andrew Yang.

Attention will now turn to the new August deadline, in the hope the commission is ready to express a more concrete view.