The United States Securities and Exchange Commission (SEC) has delayed the decision on another Bitcoin exchange-traded fund (ETF) application. With Canada already listing a few Bitcoin and Ether ETFs, it remains unclear if the U.S. is ready for a crypto ETF.
SEC delays another Bitcoin ETF decision, again
The US SEC has extended the review period of the WisdomTree Bitcoin ETF application. The regulatory agency made this decision last week as it was supposed to finish the proposal review by May 30. However, it has now extended the review period by another 45 days, with July 14 as the new date to decide on whether to approve the ETF application or not.
According to the SEC, the extension allows the agency to have sufficient time to consider the proposed rule change and the comments received. Per the filing, the rule change is to allow the listing of WisdomTree Bitcoin Trust or BTCW. The initial prospectus was filed by WisdomTree on March 11, but CBOE proposed the rule change on March 26. The regulatory agency has only received four comments regarding the Bitcoin ETF proposal.
Is the U.S. ready for a Bitcoin ETF?
So far this year, the SEC has extended the review periods of two Bitcoin ETF applications; VanEck and WisdomTree. The situations are similar to how the SEC handled the previous Bitcoin ETF applications.
The SEC has rejected virtually all the Bitcoin ETFs submitted in the past, citing market manipulation as some of the things the crypto market has to correct before an ETF is launched. However, it currently has nine Bitcoin ETFs and two Ether ETFs to review and decide.
Canada is one of the most progressive countries in terms of cryptocurrency ETFs. Over the past few months, the North American country has approved a few Bitcoin ETFs and three Ether ETFs. With institutional investors gaining exposure to cryptocurrencies via the Canadian ETFs, several experts are asking if the U.S. is ready to have one. Some experts claim that the crypto market reaching the $2 trillion mark shows that it has matured enough to handle a Bitcoin ETF. The entry of institutional players into the market over the past year is another indication that the market is maturing.
The appointment of Gary Gensler as the SEC chair was supposed to be the mark of a new dawn in the crypto space in the United States. However, it hasn’t worked out as most people expected it to so far.