A global investment management firm will have to wait even longer to receive an answer as to whether it can launch a Bitcoin ETF after the SEC delays the decision on VanEck’s latest application
After a number of previous attempts to get approval for a Bitcoin ETF approved, the commission once again refuses to make a decision citing “suitability” and “protecting investors” from “manipulative acts and practises”.
The agency had initially delayed the decision back in April 2021 until June, but the most recent filing shows the commission had still to make up its mind. The filing has opened a public consultation on the BTC ETF application and specifies that responding parties should provide opinion on the “suitability of Bitcoin as an underlying asset for an exchange-traded product”.
Whilst it is notable that the commission is actually asking interesting parties what they think (for a change), it does seem to be attempting to slant the conversation somewhat. The filing also asks respondents to tell it whether they think such a product would be “susceptible to manipulation”, which frankly in the current climate where institutional market manipulation is under scrutiny thanks in large part to the meme-stock frenzy, is laughable. Saying they are “only trying to protect investors and the public” doesn’t change the fact that savvy investors know that the wider market is not only susceptible to, but generally undergoing manipulation by large whales and financial institutions.
“What are commenters’ views generally on whether the Exchange’s proposal is designed to prevent fraudulent and manipulative acts and practices? What are commenters’ views generally with respect to the liquidity and transparency of the bitcoin markets, the bitcoin markets’ susceptibility to manipulation?”SEC Filing on VanEck Bitcoin ETF, June 16 2021
Whilst the US regulator is still dragging it’s feet on the possibility of a Bitcoin ETF, it’s worth noting that Canada has already allowed three ETF applications to go ahead in 2021 already, with over $1 Billion under management in just the first few months of the year.
How to respond to the SEC Filing
Anyone who would like to comment on the decision to, er, not make a decision (again) has just 21 days after the order reaches the Federal Register to respond. Respond online here or by email including File Number SR-CboeBZX2021-019 on the subject line.
You can also write to the SEC at 100 F Street, NE, Washington, DC 20549-1090, again citing File Number SR-CboeBZX2021-019