A new chapter has begun in the pursuit of the first cryptocurrency based exchange-traded funds (Bitcoin ETFs).
The United States Securities and Exchange Commission on Friday published a bitcoin ETF proposal recently filed by NYSE Arca and Bitwise Asset Management. The Securities regulators called for public comments in line with standard procedures beginning a timeline of events which may lead to the first approved bitcoin ETF, or not.
According to SEC guidelines, the SEC now has 45 days to make an initial decision on the ETF rule change proposal though they have an option to postpone it further.
Much Ado about Bitcoin ETFs
Bitcoin ETFs has been a matter of great interest to the cryptocurrency community; most enthusiast nurse the notion that approval will lead to a resurgence in the crypto market. Several bitcoin ETFs have been rejected in the past by the SEC including two proposals from Gemini Exchange.
As reported, VanEck and SolidX had to withdraw their joint proposal filed with Cboe BZX Exchange due to the recent U.S. government shutdown. Although there were high hopes of that proposal going through, the issuers feared that government shutdown did not give the agency enough time to review the application. Hence they withdrew it before the decision deadline of February 27. They promised, however, to refile the proposal on another date after discussions with the SEC
This latest proposal by NYSE Arca was originally filed on February 11 but was not published by the SEC until February 15. Following its entry in the government register, the general public has three weeks to submit comments on the proposed rule change.
Approval of Bitcoin ETF Proposal is Close
From indications, it’s only a matter of time until the SEC budges and approve a rule change to allow Bitcoin ETFs. Earlier this month an official of the agency reportedly revealed that a bitcoin ETF will “eventually” be approved. Commissioner Robert J Jackson Jr. had told interviewers that the reason for the agency’s strict stance on bitcoin ETF was to protect American investors but went to add:
“Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so.”
Bitcoin ETF: A misplaced Priority?
Even if it gets approved, some key influencers in the cryptocurrency community believe it will do little to lift the sector compared to metrics like crypto adoption. The latest figure to share this is the CEO of Binance cryptocurrency exchange, Chanpeng Zhao. As reported, CZ played down the importance of a Bitcoin ETF during a periscope live broadcast last week where he said:
“I think for our industry to grow we need more entrepreneurs to build real projects.”