SEC asks public to weigh in on VanEck Bitcoin ETF proposal and delays decision

• The US Securities & Exchange Commission has once again extended the review period of the VanEck Bitcoin ETF proposal by another 45 days.
• This time, the regulator would like interested parties to comment on the potential risks that the new financial product would pose to the market.
• The agency continues to delay other proposals put forward while expressing concerns over fraud and manipulation. 

The United States Securities & Exchange Commission (SEC) stated that it would like more input while considering whether to approve a Bitcoin exchange-traded fund (ETF) put forward by asset manager VanEck.

SEC expresses concerns about market manipulation 

VanEck filed for its latest Bitcoin ETF proposal in late 2020, acknowledged by the SEC by mid-March, which started the 45-day clock. However, the securities regulator has already delayed the decision window by another 45 days in late April, which extended the deadline to June 17. 

Now, the agency said in a regulatory filing that it would seek more public comment on the proposal to list the ETF on Cboe Global Markets. The SEC further pushed the deadline into July or even August for people to respond. 

The regulator’s key questions for the public include topics such as fraud and whether the trust and shares associated would be susceptible to market manipulation. The agency also would like interested parties to comment on whether the regulatory landscape has changed significantly since the first time Bitcoin ETF applications emerged in 2016. 

The filing reads:

“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” and “to protect investors and the public interest.”

This marks the second time the SEC has extended its review period of the VanEck Bitcoin proposal by 45 days. The agency could extend the decision window to 240 days in total.

The asset manager has tried to get filings approved in the past. However, the securities regulator has not approved any crypto ETFs in the United States so far. Other active filings for a Bitcoin ETF in the US include proposals from Kryptoin Investment Advisors, Galaxy Digital, Fidelity and Wisdom Tree. 

The SEC has recently delayed the decision on the Kryptoin ETF application, extending the window by another 45 days to July 27.