B Bitcoin

SEC Delays Decision Related To Bitcoin ETF

29 April, 2021
Bitcoin ETF

According to a filing released on Wednesday, the U.S. Securities and Exchange Commission (SEC) chose to delay its decision concerning the approval of the VanEck Bitcoin ETF until June. In the details, the agency is pushing back its decision on whether to “approve or disapprove, or institute proceedings to determine whether to disapprove” the structure to June 17.

According to CNBC, “the SEC typically takes 45 days from when an application is filed to render a decision on whether such a security should be allowed to trade. The 45-day window for the VanEck Bitcoin ETF ends May 3, but the SEC is extending the deadline.

Contrary to Europe, although bitcoin ETFs exist in the U.S., they do not directly own the cryptocurrency. That’s why a U.S. Bitcoin ETF would be a key moment for the cryptocurrency. As Trackinsight noted, the benefit of an ETF is that it makes access to a specific investment easy. In the details, Crypto ETFs can be bought, held and sold using a normal brokerage account. In addition, an additional benefit of the ETF is that there is no risk of losing your key and suddenly being unable to access your coins. The buying, storing and selling of the coins backing the ETF is handled by the Authorised Participant. Therefore, the ETF is stored in your brokerage account just like a normal share.