VanEck Bitcoin-ETF: Deadline is extended – Another large investment company doesn’t believe in Bitcoin-ETF until 2019
An exchange-traded Bitcoin fund, better known as the Bitcoin Exchange Traded Fund (ETF), continues to be regarded by the crypto currency community as the “holy grail” for a trend reversal and the return of a bull market. With Canaccord, the largest investment firm in Canada, another major investment firm recently said that the approval of a Bitcoin ETF in 2018 is highly unlikely. And now Canaccord was proven right, the SEC has just announced an extension until September 30, 2018.
In an official report entitled “Blockchain and Digital Assets: US Equity Research”, Canaccord researchers have described that a Bitcoin ETF in the US is not expected to arrive until 2019.
The Canadian investment company publishes a quarterly update on the status of crypto currencies. The release has recently gained traction in North America after making some important predictions.
The last update includes a long article about bitcoin ETFs. Canaccord predicts that the SEC will not decide on the current ETF applications this year, but will instead exercise its right to postpone the decision until next year 2019.
This year the SEC has rejected several applications for admission of a Bitcoin ETF, although the number of applications for an own exchange-traded fund for BTC has increased sharply.
Although the VanEck-SolidX Bitcoin ETF and the Chicago Board Options Exchange (CBOE) Bitcoin ETF have, according to many experts, the highest probability of being approved by the SEC so far, the SEC has announced that a deadline extension until September 30, 2018 has taken place (freely translated):
Accordingly, pursuant to Article 19 (b) (2) of the Act, the Commission shall determine 30 September 2018 as the date on which the Commission shall either approve or reject the proposed amendment or initiate proceedings to establish the disapproval.
The Canaccord researchers argue that due to VanEck’s and CBOE’s history of dealing with regulated U.S. markets and the SEC, their bitcoin ETFs are likely to be approved by the SEC but not immediately. The VanEck ETF is fully secured, takes over the safe storage for investors and does not rely on a single crypto exchange for evaluation, which ultimately led to the rejection of the Winklevoss Bitcoin ETF, according to Canaccord.
The SEC recently announced that it would postpone decisions on 5 Bitcoin ETFs from the New York Stock Exchange (NYSE) Arca until September. The reason for this was that the high volatility and the risks associated with crypto currencies require more time to evaluate the approval or rejection of the proposed rule change.
CNBC expert Bob Pisani said he spoke to both the Chairman of the Securities and Exchanges Commission, Jay Clayton, and the SEC’s Bitcoin Affairs Officer. Both stated that they are taking a “slow and cautious” approach to Bitcoin ETFs as they have to answer to the US Congress. The CNBC expert therefore assumes that the SEC will extend the period for the decision on VanEck’s Bitcoin ETF.
The opinion on the Bitcoin ETF of the New York Stock Exchange (NYSE) Arca could also be another indication that the decision on the VanEck Bitcoin ETF will also be postponed.
SEC Commissioner Hester Peirce, however, believes that the Commission should approve a Bitcoin ETF, although she is currently in a minority. It recently contradicted the rejection of the Winklevoss Bitcoin Trust (BZX) by the SEC.
he considers that the proposal itself complies with the law and that the SEC has failed to apply the law correctly. The notice of rejection focuses on the characteristics of the spot market for bitcoin and not on the ability of the BZX to monitor trading in the ETF shares listed and traded on the BZX in accordance with its own rules and to prevent manipulation.