SEC Delays VanEck Bitcoin ETF Again, Releases Public Solicitation Document

A glimmer of hope for a Bitcoin ETF has reemerged as the U.S. Securities and Exchange Commission (SEC) has released a public solicitation document to seek input from the public before further considering the approval of a Bitcoin ETF application submitted by asset management company VanEck.

SEC Delayed in April

Despite being rejected twice, VanEck reapplied for a Bitcoin ETF with the SEC in December last year, planning to launch it on the Chicago Board Options Exchange, CBOE.

On April 28th this year, the SEC extended the decision time from 45 days to 90 days. According to the announcement at that time, the decision deadline is June 17th, but the SEC can further extend the decision period to 240 days as per regulations.

Will Bitcoin ETF be Vulnerable to Market Manipulation?

According to the public consultation document released by the SEC, the SEC has not yet decided whether to approve or reject VanEck's Bitcoin ETF. They seek to encourage interested parties to provide input, including opinions on whether Bitcoin ETFs are susceptible to manipulation to prevent fraud and market manipulation.

Furthermore, in the interest of protecting investors and the public, the SEC requests public opinion on the suitability of using Bitcoin as the underlying asset for an ETF, including Bitcoin's market liquidity and transparency.

After the release of the public consultation document, anyone interested in commenting on Bitcoin ETFs can submit their opinions through the SEC's official website or email.

Although Bitcoin ETFs are as difficult to pass as a revolution, recent applications for multiple Bitcoin ETFs seem to indicate to regulatory agencies the significant demand from investors. This includes institutions such as Fidelity, Goldman Sachs, VanEck, NYDIG, WisdomTree, Bitwise, and others.

Moreover, the world's largest cryptocurrency trust fund, Grayscale, announced in early April that it will "100% convert GBTC to a Bitcoin ETF."