Expectedly, the US Securities and Exchange Commission has once again delayed its decision on the commodity-backed VanEck/SolidX bitcoin ETF proposal. The Commission is left with no room for further delays and the absolute final decision will come on February 27, 2019.
Bitcoin ETF: The Last Delay
The Commission has delayed its decision multiple times, the last of which took place yesterday December 6. However, this was lawfully their last chance to do so, and as it’s outlined in the order itself, the SEC must approve or disapprove the proposed rule change on February 27, 2019.
…the Commission, pursuant to Section 19(b)(2) of the Act, designated February 27, 2019, as the date by which the Commission shall either approve or disapprove the proposed rule change.
Earlier in September, Elad Roisman, picked by President Trump, was approved as the newest SEC Commissioner, comprising a senior line-up which should, at some point, back a Bitcoin ETF.
According to legal expert Jake Chervinsky, though, Commissioners will not play a role in the February 27 deadline. He explained:
The decision will be made by SEC staff in the Division of Trading & Markets. The Commissioners only get directly involved if there’s a review of the staff’s initial decision. For the February 27 deadline, the Commissioners aren’t particularly relevant.
The decision will be made by SEC staff in the Division of Trading & Markets. The Commissioners only get directly involved if there's a review of the staff's initial decision. For the February 27 deadline, the Commissioners aren't particularly relevant.https://t.co/TKAGOnSjoy
— Jake Chervinsky (@jchervinsky) December 6, 2018
What if Denied?
One of the pressing questions, besides whether or not the Bitcoin ETF will be approved, is what happens if it’s denied.
Chervinsky sheds some further clarity on the matter. He added:
They (VanEck/SolidX) could file an appeal to have the Commissioners review the staff’s decision. That’s what happened with the Winklevoss ETF, which was denied by staff in March 2017, and then the Commissioners affirmed the staff’s decision in July 2018. Otherwise, yes, they start all over.
Do you think the SEC will approve the CBOE-backed VanEck/Solid X bitcoin ETF in February 2019? Don’t hesitate to let us know in the comments below!
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