VanEck Bitcoin (BTC) ETF Delayed Again, But Not Rejected Outright

A delay is seen as a more favorable scenario, offering a glimpse into the criticisms of the US Securities and Exchange Commission.

The VanEck Bitcoin ETF has seen another delay on the long-awaited decision by the US Securities and Exchange Commission. This decision was seen as more favorable in comparison to outright refusal, but it also means the launch of a US-based exchange-traded fund is still distant.

The fund, fully known as VanEck SolidX Bitcoin Trust, has continued to seek approval despite several delays. The latest document on the delay contains a handful of key points regarding the oversight, security and fraud protection of the proposed exchange and the investment instrument.

In previous comments to the US SEC, claims were made that the Bitcoin market was liquid enough, distributed enough, and allowed for a fair price-setting mechanism. However, the most recent document seeks reassurance on those comments.

To clarify the potential for the ETF, the SEC has opened another period for commentary and clarifications on all the identified issues:

“The Commission requests that interested persons provide written submissions of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal.”

Doubts were expressed on whether the ETF could invite enough large-scale investors and further decentralize the market, so that there is no chance for concerted manipulation. The SEC also demands comments on whether the price setting mechanism for the ETF is sufficiently robust.

ETFs in general are investment vehicles tracking some of the latest developments in the world economy, including cloud computing, the gig economy, 5G networks. The drive for a Bitcoin ETF follows comments that the digital currency may displace gold, or at least break the appeal of gold ETFs.

Following the news that once again the Bitcoin ETF was not in the books, the BTC market price sank below the $8,000 mark. BTC had climbed to $8,050.40, only to recede, and hover close to the $7,900 level for a few hours. As of 7:40 UTC on Tuesday, the leading coin traded at $7,938.11.

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