In what could trigger a bearish decline for the market, the United States Securities and Exchange Commission [] has yet again stalled a publicly traded [] product. The top regulator released a to the effect on March 29.
An application for a Exchange Traded Fund [] was tabled before the by Bitwise Asset Management with NYSE Arca in February. The initial period for the decision to be made was 45 days from the date of filing the application.
The notice from the stated that a “longer period” was necessary to take a decision on the . Given this extension, the regulatory body will confirm their stance on the on May 16, 2019, according to the notice. The statement read,
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change.”
Bitwise and NYSE Arca filed the application for the back in January. A year prior, when was upwards of $20,000, the NYSE filed several applications for permission to list a ETFs.
The has not spared the other top contenders for the , VanEck and the CBOE. Coincidently, the decision regarding the VanEck/CBOE will be taken days after the Bitwise decision, on May 21, 2019. VanEck and the CBOE reapplied for their in late-January, 2019, following the US government shutdown.
It should be noted that the final deadline for the respective proposals would be October 13 and October 18, 2019 for the Bitwise and VanECK/CBOE applications. Given this information, the will merely hear the proposal in May, with two more certain delays in the pipeline, confirmed Jake Chervinkly, a member of the securities litigation team at Kobre & Kim.
His tweet read:
“The has extended its deadlines to approve or deny the Bitwise and VanEck proposals to May 16 and May 21, 2019. The can, and almost certainly will, delay both proposals two more times.
The ’s *final* deadlines will be October 13 and October 18, 2019.”
Regulatory authorities are still on the fence regarding a publicly traded product as the Chairman confirmed a few weeks ago. Chairman Jay Clayton cited the ease of the market to be manipulated and the excessive price volatility as the main reasons for the lack of approvals of the .
On one hand, officials do not place trust in the markets, on the other, they believe a bull-run is imminent. Valarie Szczepanik, the ’s digital asset advisor stated that the “crypto-spring” was imminent, but maintained the need for regulatory oversight.
Recently, Bitwise submitted a report to the covering various aspects of the market in support of its application. The report stated that 95 percent of volume touted by exchanges was fake, the futures market was significant compared to its spot equivalent and that under the hood, the market was less prone to manipulation than one might think.
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Published at Sun, 31 Mar 2019 19:17:42 +0000
