SEC delays decision on ETF again, Vaneck, SolidX withdraw proposal

[Oilacris]

-snip-

@bbc.reporter I could not help but notice you’re smitten by Tom Lee lol, but coming to Sec I had forgotten about their decision as each time there’s either a delay or a rejection. Another set of dates and again Sec will delay the application why doesn’t it simply puts up a notice, stating they’ll not be approving Bitcoin ETFs kindly do not submit any applications regarding it. I don’t expect the market to be effected by this decision, but what do you’ll think will prices remain neutral or will it tank?.

No one knows if it would tank or shoot up but these ETF's news doesn't really bother anymore.They can delay as much as they like and also they wont really give out that final verdict that they wont ever approve any of them.We don't know the actual reason behind but it doesn't matter too much.

[serjent05]

Another delay. I reckon everyone does not care anymore and knows that bitcoin can Tom Lee itself to $25k without an ETF hehehe.

In any case, mark the dates mentioned in the article and expect another delay.



The U.S. Securities and Exchange Commission (SEC) delayed making a decision on three bitcoin exchange-traded fund (ETF) proposals Monday.

The ETFs, proposed earlier this year by asset managers Bitwise Asset Management, VanEck/SolidX and Wilshire Phoenix, and filed with exchanges NYSE Arca and Cboe BZX, are all seeking to become the first such investment vehicle based on bitcoin.

The filings were published in the Federal Register in February and June, kicking off the legally-mandated 240-day clock on a final decision.

Final decisions on the Bitwise and VanEck/SolidX proposals are expected by Oct. 13 and Oct. 18, respectively.

The next decision on the Wilshire Phoenix proposal is scheduled to occur by Sept. 29.

Read in full https://www.coindesk.com/sec-delays-decisions-on-3-bitcoin-etf-proposals-until-autumn

It seems SEC are really analyzing stuffs.  Analyzing how they can fully take advantage of these ETF.  I think until they realized how to fully take advantage of these ETF's they will keep on delaying these stuff.  I wouldn't keep my hopes on those dates, I am still expecting another delay when the due date comes.

[pooya87]

why does SEC even bother dedicating any time for these proposals anyways. they are going to reject all of them in the end, they have been doing it for a couple of years now without any exceptions. they just waste the time of their staff, these companies submitting ETFs and everyone else's time!

Why do you think they dedicating any time on any crypto related ETF? It's just a formality for them, and such proposals were rejected at the very moment of their submission. 240 days for something that can be done in 24 days is just ridiculous, proposal is same in Day 1 and in Day 240.

I would not agree that companies who submitting ETFs to SEC wasting their time, they need to make constant pressure on SEC to show that there is a lot of interest in something like Bitcoin ETF. Most experts say that we should see first crypto ETF in few years, so it can be 1 or 5 years from now.

well at the very least that is a lot of clerical work for accepting, documenting, reviewing and rejecting each and every proposal they receive.
as for the pressure, you might be right but it doesn't seem to affect US SEC whatsoever. this pressure has been on them for a couple of years now and that is while other countries already have approved some bitcoin ETFs. there seems to be something else in play here which makes SEC reject them. they need to find and fix that issue first.

[Lucius]

there seems to be something else in play here which makes SEC reject them. they need to find and fix that issue first.

I think we all know that the SEC can not independently make such a decision, they are waiting approval from some higher instance, and we all see what is the attitude of the most powerful people in the American political scene toward cryptocurrency. Some say Libra is good thing for BTC, but it shows just the opposite, they put all coins in one basket and they will deal with them in the same way.

I doubt that any fix can be made from companies that submit requests, they cannot eliminate volatility or force crypto exchanges to operate even more transparently, so it all comes down to politics in the end.

[leader2704]

Mark that date because this is the final extension. As mentioned in the article, on February 27, 2019 the SEC will need to make a decision if they approve or reject VanEck's proposal. What a terrible time to put bitcoin in a period of uncertainty.

What are your predictions, will the ETF be approved or rejected? I know my answer, but I reckon you would not like it. If the SEC really wanted to approve it, it would have been approved already.


Tom Lee waiting for the SEC's decision


The U.S. Securities and Exchange Commission (SEC) extended a rule change proposal allowing the nation’s first bitcoin exchange-traded fund (ETF), pushing the decision deadline to next year.

In a notice posted online, the securities regulator said it was extending the review period for the ETF to Feb. 27, 2019. The proposal was first submitted by money manager VanEck and blockchain startup SolidX, who partnered with the Cboe exchange earlier this year.

Under SEC rules, a decision on the proposal cannot be delayed any further, meaning the next notice must either approve or reject the ETF.

Read in full https://www.coindesk.com/sec-again-delays-decision-on-vaneck-solidx-bitcoin-etf

well, no suprised they delayed ETF again, but why dont they just reject but keep delaying?? Personally, I dont want an approved ETF, an approved ETF will agaist all value of BTC

[davinchi]

I think it is not a formality, if you know how SEC works they are literally looking for each and every single detail in these deals and there is always a chance they would accept the offer and let them do an ETF, the problem is since it is a bitcoin related thing and not fiat related they are looking for reasons harder to decline these chance and considering these companies are new places and not huge enough places that could bribe their way into it they usually get declined.

That is why if one day a place like JP Morgan for example decides that they want to actually come up with an ETF that would be presented to SEC it will be accepted in first ever hearing, it would be accepted by first day but they would have to wait until the official day to sign it basically, so its not about SEC being against btc but more about SEC wanting a piece of the pie.

[gentlemand]

That is why if one day a place like JP Morgan for example decides that they want to actually come up with an ETF that would be presented to SEC it will be accepted in first ever hearing, it would be accepted by first day but they would have to wait until the official day to sign it basically, so its not about SEC being against btc but more about SEC wanting a piece of the pie.

Piece of what pie? Their job is to keep markets orderly. They have the power to approve market products provided they can ensure they operate in a manner they can oversee and enforce.

Nothing has happened since the idea of the first Bitcoin ETF emerged to point to that being any more achievable.

I still don't believe we'll see an ETF for many more years, if ever. And if one ever did emerge it'll have been long since surpassed by products that routed around the necessity of SEC approval.

[STT]

What I dont quite get is why one countries ETF regulations are the start and end of this proposal.   There are major markets all over the world in lots of different currencies, sure USA might be the largest but theres surely other routes.    Seems strange it should come down to a few peoples opinion on BTC when its all about decentralisation why would this be a chokepoint for development and why is that ok.   Surely its not compatible if so constricted, not really.

I get money matters and this alot of money potentially flowing in but I think dont see its important at all to the spirit of BTC and its long game.   Its just speculation.

[omonuyak]

-snip-

@bbc.reporter I could not help but notice you’re smitten by Tom Lee lol, but coming to Sec I had forgotten about their decision as each time there’s either a delay or a rejection. Another set of dates and again Sec will delay the application why doesn’t it simply puts up a notice, stating they’ll not be approving Bitcoin ETFs kindly do not submit any applications regarding it. I don’t expect the market to be effected by this decision, but what do you’ll think will prices remain neutral or will it tank?.

No one knows if it would tank or shoot up but these ETF's news doesn't really bother anymore.They can delay as much as they like and also they wont really give out that final verdict that they wont ever approve any of them.We don't know the actual reason behind but it doesn't matter too much.

The ETF news is still affecting bitcoin and you can see that from the current price movement. Bitcoin has lost over $2000 since last Friday till now and it is still going down! I have not seen and end to how this ETF decision will keep affect traders emotions. Maybe it is a plan to keep bitcoin prices in check.

[1Referee]

What I dont quite get is why one countries ETF regulations are the start and end of this proposal.   There are major markets all over the world in lots of different currencies, sure USA might be the largest but theres surely other routes.    Seems strange it should come down to a few peoples opinion on BTC when its all about decentralisation why would this be a chokepoint for development and why is that ok.   Surely its not compatible if so constricted, not really.

I get money matters and this alot of money potentially flowing in but I think dont see its important at all to the spirit of BTC and its long game.   Its just speculation.

The US is the financial capital of the world. If you look at the largest ETF markets in the world, you have the US with $5 trillion being the absolute number one, while the second largest ETF market with a strong Bitcoin representation (Japan) comes in at a measly $300-$400 million. I think the numbers do speak for themselves.

Investors care only about the numbers and how willing institutions in a certain country are to allocate a certain percentage of their portfolio to speculative assets. Nothing beats the US in that regard.

The big money that moves the market doesn't care about decentralization, only we do as perma bulls. For them it's just a very lucrative financial adventure.

[Slow death]

Another delay. I reckon everyone does not care anymore and knows that bitcoin can Tom Lee itself to $25k without an ETF hehehe.

In any case, mark the dates mentioned in the article and expect another delay.



The U.S. Securities and Exchange Commission (SEC) delayed making a decision on three bitcoin exchange-traded fund (ETF) proposals Monday.

The ETFs, proposed earlier this year by asset managers Bitwise Asset Management, VanEck/SolidX and Wilshire Phoenix, and filed with exchanges NYSE Arca and Cboe BZX, are all seeking to become the first such investment vehicle based on bitcoin.

The filings were published in the Federal Register in February and June, kicking off the legally-mandated 240-day clock on a final decision.

Final decisions on the Bitwise and VanEck/SolidX proposals are expected by Oct. 13 and Oct. 18, respectively.

The next decision on the Wilshire Phoenix proposal is scheduled to occur by Sept. 29.

Read in full https://www.coindesk.com/sec-delays-decisions-on-3-bitcoin-etf-proposals-until-autumn

I believe the SEC is hoping to see what the position of US politicians is, since so far it seems to me that they are between yes and no or there is nothing concrete whether they want to legalize or not bitcoin, so the SEC is left without too many arguments to accept an ETF. Then the SEC will wait and see how the government will position itself and assess whether it will be less problematic for them if they accept an ETF bitcoin. this became a "political" game.

and about tom lee he's now very cautious in his predictions:

“We don’t have a target for Bitcoin, but the prior high was $20,000. I think there’s a good possibility that Bitcoin reattains that high this year.”

[electronicash]

why shouldn't they just stop applying ETF? at least let them rest for 5 years before applying again.

they took time to analyze how to take advantage of this ETF while they are delaying all these they are also losing the opportunity to some projects that might also apply for ETF when they finally approve BTC.

[arpon11]

there seems to be something else in play here which makes SEC reject them. they need to find and fix that issue first.

I think we all know that the SEC can not independently make such a decision, they are waiting approval from some higher instance, and we all see what is the attitude of the most powerful people in the American political scene toward cryptocurrency. Some say Libra is good thing for BTC, but it shows just the opposite, they put all coins in one basket and they will deal with them in the same way.

I doubt that any fix can be made from companies that submit requests, they cannot eliminate volatility or force crypto exchanges to operate even more transparently, so it all comes down to politics in the end.

I agree with you and the comments made by the most powerful humans being on earth last time(Trump) is a really warning to any governments agencies that may desired of having something to do with bitcoin or cryptocurrencies in general. SEC alone cannot take unilateral decision in approvals of ETF but the body most seek approval from other agencies and political authorities before doing that.

[barbara44]

In any case, mark the dates mentioned in the article and expect another delay.

why does SEC even bother dedicating any time for these proposals anyways. they are going to reject all of them in the end, they have been doing it for a couple of years now without any exceptions. they just waste the time of their staff, these companies submitting ETFs and everyone else's time!

I don’t know about the United State system, but in my country, anything that has to do with government is like court case, you take a case to court and it takes 5 years for them to pass judgment and same as government, you take a proposal to them and it would take like everlasting for them to act on it also, if that is the case of US, what is the point wasting time to wait for them when they could be in this issue for the next 5 years after the system must have even found away round to get the effect of what their ETF approval would have gotten.

And then I doubt if the SEC would really approve this as we know that they have even once been against cryptocurrency, so there is no point thinking they would really be convinced about it and change their mind.

[beerlover]

Honestly, as they have rejected so many until now,these decision of delaying do not bring me any hype neither, that is actually a good thing too.

Think about it, if we were expecting a lot and assuming it would be getting accepted and than it got delayed again or got rejected we would be let down and the price would fall, however considering nobody expects this to get accepted now there is no pressure and even if it gets rejected than the price would be not affected however if it somehow gets accepted (Doubtful) than it would affect the price greatly and it would go up.

So, there is no downturn here, there is nothing that could affect the price badly, its either gonna be zero affect or it will be positive affect which is why I think its awesome. I personally love the situation right now because of it.

[TheAndy500]

Everyone wants the SEC to approve the ETF because it can cause a big price increase. However, in my opinion, in the long run, it can be bad to Bitcoin. So for me, they can delay it forever.

[guoyu78]

Everyone wants the SEC to approve the ETF because it can cause a big price increase. However, in my opinion, in the long run, it can be bad to Bitcoin. So for me, they can delay it forever.

It wouldn't hurt bitcoin price, it wouldn't be bad for bitcoin, it would be just good for one company or two and may help us a bit more in the volume side but there is nothing else that would affect bitcoin. Don't get me wrong when I say it wouldn't be bad for bitcoin I do not mean it will be good for bitcoin, I am just saying it wouldn't be bad, it would basically be non factor in bitcoin price, maybe with volume it could provide a bit more stability but I doubt it will have that much volume so basically it has no affects on bitcoin at all.

I hope they would accept and let it be, I am not gonna argue that having it is worse than not having it, I would rather see how it works now then see it 15 years from now, let us get it working and we will improve along the way.

[bbc.reporter]

The skeptical me is thinking that a bitcoin ETF offered to ordinary investors is what the American government do not want. The government has always been a hurdle for ordinary people to prosper by blocking them from entering into more unfamiliar investments.

Is this what the SEC was planning from the beginning? Approve a bitcoin ETF limited only for the rich?



VanEck and SolidX bypass SEC by offering Bitcoin ETFs to accredited investors

Two investment companies whose Bitcoin ETF proposals have been delayed by the SEC have found a way around the tight regulations. In a joint statement, VanEck Securities Corp. and SolidX Management said they planned on launching a “limited version” of the BTC ETFs, only available to accredited investors.

After facing yet another delay on their joint Bitcoin exchange-traded-fund (ETF) proposal, asset management companies VanEck Securities Cop. and SolidX Management LLC found a way to bypass strict SEC regulations.

In a joint press release, the two companies announced that they plan on issuing a limited version of their originally planned Bitcoin ETF, only available to institutional investors.

According to The Wall Street Journal, VanEck and SolidX will sell shares in the VanEck SolidX Bitcoin Trust to qualified institutional buyers. In the statement, the companies said that the shares will be the first Bitcoin products for institutions that is cleared. It will act much like a traditional ETF, featuring the same creation-and-redemption process.

The companies were able to launch this unusual product thanks to an exemption in the law regulating securities in the U.S. The statement referenced Rule 144A of the 1933 Securities Act as the enabler of this offer. The rule specifically allows “privately placed securities” to be traded among “qualified institutional buyers” without having to register with the SEC.

Starting from Thursday, Sep. 5, the shares will be quoted on the OTC Link ATS, an alternative trading system directly regulated by the U.S. Securities and Exchange Commission.

Read in full https://cryptoslate.com/vaneck-solidx-bypass-sec-bitcoin-etf-accredited/

[exstasie]

Two investment companies whose Bitcoin ETF proposals have been delayed by the SEC have found a way around the tight regulations. In a joint statement, VanEck Securities Corp. and SolidX Management said they planned on launching a “limited version” of the BTC ETFs, only available to accredited investors.

Interesting approach, if somewhat anti-climactic. My gut reaction was "this brings nothing new to the table" since even non-accredited investors can trade some of Grayscale's products (GBTC, ETHE, ETCG) through their brokerage accounts. But conceivably, a product like this could end up being picked up by asset managers and packaged in retirement funds down the line, which is pretty huge. And like Bakkt, this could be an avenue by which institutional investors affect the spot market, since the ETF would be open-ended.

[BitHodler]

The skeptical me is thinking that a bitcoin ETF offered to ordinary investors is what the American government do not want. The government has always been a hurdle for ordinary people to prosper by blocking them from entering into more unfamiliar investments.

In this case it doesn't really matter since the big money happens to be in the institutional accounts. I think it's even better because it gives retailers the incentive to storm into spot exchanges and buy there. People should take care of their own coins.

This will balance things out nicely until this ETF gets approved in full, which might figure out pretty soon with how this is the moment of truth. No more further delays. We have had too many of them already.

I still don't think that this event is enough to prevent the price from making lower lows. If we see a big selloff tomorrow that's probably a sign that some institutions have bought in before the event took place to sell the news.