In a recent order came into being on August 7, the U.S. Securities and Exchange Commission (SEC) has decided to keep its decision on Vaneck Solidx bitcoin ETF. It implies that ETF has to wait for one more month to come into action.
The agency has stated the reason behind the said delay as they need time to think over what would be the first ever one-of-its-kind exchange-traded product in the U.S. The proposed rule change issued by the Vaneck Solidx Bitcoin Trust is of high concerns, and the agency can’t take a random decision over it.
The earlier progress on Solidx Bitcoin ETH
On June 20, Cboe BZX Exchange out forward its proposal to change the existing rules in front of SEC. The same rules published in the Federal Register on July 2. Since the announcement, it got the attention of all the big guns of cryptocurrency world. As per the SEC, there were more than 1,300 comments about the proposed rule change.
The new timeline
By extending 45 days period, SEC has provided a new date on which it will announce the faith of Solidx bitcoin ETF. The governing agency has set September 30 to announce its final decision.
The agency has explained that the delay is not an illegal act. As per the Exchange Act, the agency can extend the period for any proposal up to 240 days from its publishing in the Federal Register.
A sense of relief
Though Solidx bitcoin ETF has to wait for a one more month to know its faith, SEC has resolved its previous rejection issues of the same. In March of last year, Solidx Bitcoin Trust also proposed a rule change which was directly got rejected by SEC. However, this time, SEC has resolved its previous issues which led to the rejection. Some of the significant concerned settled this time can be stated as:
- For bitcoin, there are numerous derivatives markets, which exists at present.
- OTC index for pricing and NAV will be used by the proposed trust.
- A large number of agreements, related to information sharing, are appended to current modifications of rules.