Countdown Restarts On SEC Decision About CBOE-VanEck Bitcoin ETF

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The U.S. Securities and Exchange Commission (SEC) may make an initial decision on not one, but two different bitcoin exchange-traded fund (ETFs) proposals by April 5.

A bitcoin ETF proposal submitted (for a second time) by VanEck, SolidX and the Cboe BZX Exchange is anticipated to be officially released in the Federal Register Wednesday, starting the preliminary 45-day clock for approval, rejection or extension. The proposition was first posted on the SEC’s site on Feb. 13.

Once the proposition is officially published, the general public will have 3 weeks from Feb. 20 (meaning up until March 13) to submit their initial actions to it. Then the SEC will have another 3 weeks, until April 5, to decide or provide itself an extension.

At the minute, the proposition appears in the Public Inspection area of the Federal Register site, meaning it has actually not yet been formally released. As the existing page notes, “just main editions of the Federal Register supply legal notification to the general public and judicial notice to the courts,” while the most recent version of the proposition itself states that it is set up to be released Wednesday.

The VanEck/SolidX proposal will sign up with one submitted by Bitwise Investment Management and NYSE Arca, which was published in the Federal Register on Feb. 15, meaning the SEC has up until the beginning of April to decide on it or delay the decision.

The VanEck/SolidX proposal was first submitted in 2018, and was extensively anticipated to be the very first proposition to be authorized by the U.S. securities regulator. Nevertheless, this proposal was withdrawn during the longest U.S. government shutdown in history and re-filed at the end of January.

If authorized, an ETF might potentially bring new liquidity into a bitcoin market that is beginning to reveal indications of healing. Nevertheless, it’s essential to remember that the SEC can give itself approximately 3 extensions on any guideline change proposal, meaning it could still be months before a final decision is reached on either ETF.

Early feedback

consensus

While the official comment duration has not officially opened yet, the VanEck/SolidX proposition is already getting feedback.

The filing’s first action, noted as from Sam Ahn at Hana Trading, asks how the companies are specifying bitcoin’s intrinsic worth. The question of intrinsic worth is very important for investors who may consider buying into the ETF, Ahn discusses.

Ahn’s action links to 7 previous reactions on different ETF propositions, all of which also question bitcoin’s intrinsic worth.

Gabor Gurbacs, VanEck’s digital asset strategy lead, declined to comment on this action.

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