The Securities and Exchange Commission (SEC) in the United States has decided to delay its decision on the VanEck Bitcoin ETF application.
According to a filing, the US Securities and Exchange Commission has postponed its verdict on the VanEck Bitcoin ETF. The clearance is being held up until Gary Gensler, the current chairman of the Securities and Exchange Commission, oversees BTC ETF proposals. The proposed bitcoin ETF would be the first of its kind, providing customers with direct access to the asset class. Other ETFs aim to provide investors with exposure to cryptocurrency by stocks of related firms.
The Securities and Exchange Commission is considering the possible pitfalls for institutional investors.
Many in the crypto world claim that the US SEC is considering the risks that uncertainty and fraud pose to institutional investors. Typically, such a decision is taken in 45 days, but the SEC needs more time. “The Commission considers it necessary to designate a longer timeframe during that will proceed on the planned rule change so that it can be implemented more time to consider the proposed rule change and the comments received,” according to the filing.
Late last year, VanEck applied for a bitcoin ETF.
VanEck, an investment banking firm, filed the bitcoin ETF late last year, generating a lot of buzz in the crypto world. According to the filing, “bitcoin has matured” and is comparable to “established global equity, fixed income, and commodity markets” in terms of “efficiency and scale.” President Biden named Gary Gensler as SEC Chairman in January, and the crypto world applauded the announcement. The MIT professor has taught blockchain and cryptocurrency courses and is mainly positive about the asset type. The reaction among the crypto community has been largely positive since his nomination.