Not long after granting Bitcoin Futures ETFs to Proshares and VanEck, the SEC has seen fit to not make a decision on the Valkyrie Bitcoin spot ETF. The decision has been postponed now until January 2022.
Delays in Bitcoin ETFs are not uncommon. Of the many that have been filed, the Valkyrie Bitcoin ETF has had its share of delays. The most recent postponement on the decision was back in June of this year.
For this latest date change, the SEC said in a statement:
“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised in the comment letters that have been submitted,”
The difference in the two types of ETF presently being discussed is that the Proshares and VanEck ETFs do not involve buying the underlining bitcoin asset. Instead, the spot ETF proposed by Valkyrie would give investors exposure to the actual asset, and would mean that bitcoin would need to be bought by the ETF fund.
Given the quite negative opinion of crypto by Gary Gensler the chair of the SEC, perhaps it is not a surprise that he grants the future ETFs which do not directly affect the price, while granting the spot ETF might well lead to even huger price gains for bitcoin, possibly in detriment to the US dollar.
Hester Pierce, one of the 5 commissioners in the SEC, has often made her opinion known that she is in favour of a bitcoin ETF. Her view is that investors should have as many choices as possible – not just futures ETFs.
“We consistently rejected spot-based products, even though we contradicted what we did with similar products outside of the crypto space.”
Gary Gensler will state that he is adhering to one of the SEC’s most important mandates, and that is to protect investors. However, most investors are at the mercy of the stock market, and all the manipulations that that entails.
Many would breathe a huge sigh of relief should the SEC do the done thing and work with the crypto sector to bring in appropriate regulation that protects investors, but at the same time also encourages the massive amount of positive innovation that is coming out of this space.
Granting a Bitcoin spot ETF would certainly help.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.