Bitcoin Drops Below $6,750 as SEC Delays Decision on Bitcoin ETF
The US Securities and Exchange Commission has published a statement that it will delay making a decision on the latest Bitcoin ETF proposal.
Bitcoin, trading above $7,100 prior to the SEC statement, dropped more than 3%, and is now trading around $6,750 at time of writing, according to data on WorldCoinIndex.
The two-page statement explains that the regulatory body is seeking an extension. The SEC wants more time to deliberate the proposed rule change filed by Cboe to list the Bitcoin ETF proposed by the VanEck SolidX Bitcoin Trust.
The SEC writes,
The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change. The Commission, pursuant to Section 19(b)(2) of the Act, designates September 30, 2018, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.
The original target date for the decision was August 16.
The delay comes despite an outpouring of comments that were submitted to the SEC regarding the proposed ETF.
The delay reintroduces a bit more uncertainty into the cryptocurrency market. Vitalk Buterin, co-creator of Ethereum, tweeted his opinion that he believes there is too much media attention on a Bitcoin ETF and called for more focus on the adoption of cryptocurrencies.
But an ETF is regarded as the key instrument that will open the cryptocurrency markets to institutional investors, which in turn can create the market liquidity and financial legitimacy that can spark far more mainstream adoption.
On July 26, the SEC denied approval of the second Winklevoss-backed Bitcoin ETF in a decision that spurred an official dissent from SEC Commissioner Hester Peirce. She wrote, “There’s no reason for us not to allow this product to go ahead and trade on the exchange.”
If this latest proposal is approved on September 30, it will become the first SEC-regulated Bitcoin or cryptocurrency ETF.