As expected, there was widespread panic in the markets after the U.S. Securities and Exchange Commission (SEC) decided to extend the time period for taking a decision on the Vaneck Solidx BTC ETF. This is based on the proposed rule change that was filed by the Cboe BZX Exchange. In the meantime, the ETF team also submitted key changes to the SEC, which will supposedly address all concerns that were cited as reasons for rejecting the Solidx Bitcoin Trust ETF in 2017.
The Cboe BZX Exchange filed the proposed rule change with the SEC on June 20, which was published in the Federal Register on July 2. This BTC ETF has received a lot of attention from the crypto community with several banking on its eventual approval as a boost for the markets. However, as expected, the postponement led to exactly the opposite and BTC crashed to below the $6,500 level, whilst other coins such as Ethereum, Ripple and Bitcoin Cash retreated to levels that have not been seen since September 2017 just before the bull-run began.
According to the securities regulator, it has received “more than 1,300 comments on the proposed rule change” as of Aug. 6. However, the Securities Exchange Act allows the SEC to designate a longer period for review within 45 days of the Federal Register publication, which, in this case, is needed “so that it has sufficient time to consider the proposed rule change.”
The SEC has set the new deadline of September 30, 2018 “as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.” However, this may not be the last time the SEC postpones its decision on this bitcoin ETF. According to the Exchange Act, the Commission can extend it to 240 days from the date published in the Federal Register.
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.