US SEC Scheduled to Decide on VanEck Bitcoin ETF Tomorrow

The most probable outcomes are still either a delay on the decision or a rejection.

The US Securities and Exchange Commission (SEC) is scheduled to decide on the VanEck Bitcoin ETF tomorrow, May 21, 2019. The deadline is based on a 90-day period after a filing with the Federal Register. The VanEck fund started the countdown this February 20, when the bear market was still in full swing, and not many were positive about approval for a Bitcoin (BTC) ETF. After temporarily withdrawing the ETF proposal, the VanEck fund refiled it, with the decision deadline set for May 21.

However, things have changed in the meanwhile, and some in the community are optimistic about the upcoming decision. That being said, if the decision is negative, BTC prices, which have been on recovery, may crash once again.

On the other hand, Exchange-traded funds (ETF) in general have lost their luster in 2019, with the SEC cracking down on the usage of trigger terms, including “blockchain” and 5G technologies, to stave off speculation and fraud.

Interestingly, last week, the Commission delayed its decision on the Bitwise ETF, but nothing was decided about the VanEck proposal, which according to some is a reason for optimism, while others think a rejection may be on the cards.

https://twitter.com/jchervinsky/status/1130209159503319040

At the same time, the Bakkt exchange may be the silver lining, as the market operator has set a July date for a mainstream Bitcoin investment product. The Bakkt market will offer futures with physical delivery, based on a proprietary custody service.

The SEC verdict arrives at a time when storage solutions and custody have evolved to support the needs of institutional investors. At the same time, the markets are still showing the possibility that prices remain volatile and have the door open for manipulation.

A decision to delay would be seen as more favorable, with the SEC explaining its demand for changes, to which the VanEck fund can answer with an explanation. But this time, another denial is possible, despite the evolution of the BTC markets and the tentative involvement of traditional finance firms.

Ahead of the decision, BTC prices weakened somewhat, sinking from the highs of the late Sunday rally. BTC traded at $7,908.38 as of 11:20 UTC on Monday.

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