There are mixed reactions in the crypto world as the US financial has asked for more time to decide on Bitcoin ETF applications. Instead, the regulator has asked interested parties to give feedback within 21 days after they publish the request in the Federal Register; pundits are wondering whether it’s a sign of hope or doom.
The Securities and Exchange Commission (SEC) on Thursday, September 20, 2018, published an official statement postponing the much awaited decision regarding the CBOE Bitcoin ETF application.
ETF Delayed Yet Again
There have been initial delays, and a decision was awaited by September 30th; the earliest date for any decision will now wait until February 2019. However, the commission stated that proceedings towards reaching a final decision were still underway. The commission’s post read in part:
“Pursuant to Section 19(b)(2)(B) of the Act,30 the Commission is providing notice of the grounds for disapproval under consideration. The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b) (5) of the Act, which requires, among other things, that the rules of a national securities exchange be “designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,” and “to protect investors and the public interest.”
On what the outcome is likely to be, the commission did not give a definite answer but said SEC was reaching out for public participation and calling for comments from interested parties; the commission said it had received over 1400 comments by September 19, 2018, on the proposed changes. Back in July, they informed the public they could leave their comments on the SEC website regarding the filing by Chicago Board Options Exchange (CBOE) of a Bitcoin ETF. The commission said further:
“Institution of proceedings does not indicate that the Commission has reached any conclusions regarding any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.”
SEC had earlier fixed September 30, 2018, as the day it would make the big pronouncement and this new delay will amount to frustration among cryptocurrency enthusiasts who had hoped that a Bitcoin ETF would breathe new life into the stagnant market. The market has always displayed positive price movements in the days ahead of Bitcoin ETF decisions, a sign that hopeful investors are piling up their supplies in readiness for a valuation boom.