Crypto Market Bleeds as SEC Delays VanEck Bitcoin ETF Decision
The crypto market is bleeding after the SEC announced it has delayed deliberations over the VanEck Bitcoin ETF application until September 30th.
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SEC Spears the Crypto Community With VanEck Bitcoin ETF Delay — Markets Bleed
Citing the right to “designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change”, the U.S. Securities and Exchange Commission announced its intention to postpone the VanEck Bitcoin ETF decision until September 30th.
CBOE BZX Exchange, Inc. filed a proposed rule change with the regulator on June 30th, seeking to list and trade shares of SolidX Bitcoin Shares, issued by the VanEck SolidX Bitcoin Trust. After more than 1,300 comments on the application, the Commission voted to extend the 45-day period it has to approve, disapprove, or “institute proceedings to determine whether the proposed rule change should be disapproved.”
The market reaction was savage. Bitcoin shed $500 USD in less than six hours, with the entire cryptocurrency market down to under $230 billion, having shed close to $15 billion in the last 24 hours, per Coinmarketcap.
Everybody Thought VanEck Had a Better Shot Than the Winklevii
The decision follows a second rejection by the SEC of the Winklevii Bitcoin ETF application, which was delivered on July 27th. In that application the regulator found the argument that the bitcoin market was “generally … less susceptible to manipulation than the equity, fixed income, and commodity futures markets” unpersuasive.
The VanEck product was roundly considered to be more mature and developed than the Gemini founders’ Bitcoin ETF. Influential Twitter identity @CryptoQF — who offers commentary on traditional and newer asset classes such as cryptocurrencies — sees significant differences between the quality of the VanEck and Winklevii vehicles:
Here is the Van Eck CBOE SolidX Bitcoin ETF proposal made to the SEC a week ago. It’s ROCK SOLID. It addresses the SEC concerns head on. Major leagues vs the Winks amateur hour. I’m even more confident in approval. Don’t take my word for it, check it out https://t.co/BmxLX4nVE9
— Crypto Quantamental (@CryptoQF) August 8, 2018
Commissioner Hester M. Peirce, a dissenting voice on the commission in the previous decision, is yet to offer her opinion on yesterday’s announcement.
In postponing their decision over the VanEck proposal, the SEC has yet again proven its capacity to have a dampening impact on the cryptocurrency market. ETF.com CEO Dave Nadig said a year ago he was sure that bitcoin funds were coming. While many remain similarly confident in the inevitability of Bitcoin ETF investment vehicles, yesterday’s move dealt a savage short-term blow to the industry.
Have your say. Will the SEC eventually approve of a Bitcoin ETF or futures investment product? Will the VanEck Bitcoin ETF be the first?
Images via Pixabay, Maxpixel