The US Securities and Exchange Commission (SEC) has pushed back its decision on the latest application by global investment firm VanEck to launch an exchange-traded fund (ETF) for bitcoin cash (BTC).
The company has long been trying to get the green light for what will be America’s first BTC ETF, as the first filing with the SEC dates back to 2017 and was ultimately rejected.
His second petition was then denied in November 2021 by the SEC, which found that the company had failed to meet standards for protecting investors and preventing fraudulent and manipulative acts and practices.
However, VanEck continued to file a third request for a June 2022 BTC ETF offering with the SEC, highlighting several reasons why the SEC should reverse its previous decisions.
Also read: Bitcoin ETF: A Beginner’s Guide to Exchange Trading Funds
VanEck’s main argument was that US funds were getting exposure to bitcoin through spot exchange trading products offered in Canada. America’s northern neighbor approved a spot Bitcoin ETF in February 2021, making it one of the first countries in the world to do so.
The deadline to approve the last filing with the SEC was set to expire on August 27, so the regulator postponed its decision on the matter for almost two months.
The SEC has given itself until October 11 to make a decision and noted that it received no comments on the proposed rule change after a call for public comments was issued in July 2022:
“The Commission believes that it is appropriate to set a longer deadline for deciding on the proposed rule change, so that there is sufficient time to consider the proposed rule change and the issues raised therein”.
The push for a US Bitcoin ETF location has been a topic of discussion since 2017, which would essentially allow institutional investors to buy shares representing Bitcoin that VanEck would hold. This gives investors exposure to bitcoin without actually owning and storing the cryptocurrency. VanEck plans to list its BTC ETF product on the Cboe BZX exchange.