In a decision that could further impact the value of Bitcoin and other cryptocurrencies, the security and exchange commission (SEC) has reserved the decision to grant permission to three exchange-traded funds (ETF) in the US. The regulatory body also reserved the decision regarding rule changes in the Bitcoin-traded funds, which could possibly have negative implications for the whole crypto sphere.
Wilshire Phoenix, Bitwise asset management, and VanEck SolidX are the three companies which have applied for ETF. These companies also proposed authorities some changes in the rules as according to the current legislative procedures, the applications of these firms might get rejected. In the past, we have witnessed many such precedents where the SEC has rejected applications for ETF on the basis of laid-out rules and procedures with the well-known case being the Winklevoss twins. The permission to Winklevoss twins was rejected in March 2017. Following that denial, many applications involving Bitcoin ETF was withdrawn by firms as they found that their chances of rejection were on the higher side. The organizations which withdrew their application included the likes of ProShares Trust, Cboe Bitcoin ETF, Reality Shares ETF Trust, and Direxion Share ETF.
Releasing an official statement in this regard, SEC said that it is appropriate for the authority to take a long time before approving or disapproving the proposals submitted to it. The agency is involved in the wider consultation before arriving at a particular decision, and hence, it’s natural that some more time is required. SEC had already expressed its concerns over the valuation and level of liquidity about various instruments in which ETF are willing to invest. This decision to delay the judgment has come in the wake of Bitcoin’s struggle to maintain its level above $11,000. Since August 10, the largest cryptocurrency by market capitalization struggled to stay afloat with its value constantly hovering between $11,300 and $11,400. However, many financial experts and cryptocurrency analysts are suggesting to investors that this is an opportune time to invest in Bitcoin.