The regulator of financial markets in the United States Securities and Exchange Commission (SEC) announced on Tuesday, August 7, the proposal to create a Bitcoin ETF is still under review, and the decision is postponed to September 30.
The SEC considered the request submitted by Cboe Global Markets in association with VanEck Investment and SolidX, which is one of the four significant proposals the regulator has to review in the following months.
The statement explains that the proposal “to list and negotiate SolidX Bitcoin shares issued by VanEck SolidX Bitcoin Trust” received between July 2 and August 6, 2018, more than 1,600 comments through the Federal Register.
The Securities and Exchange Commission of the United States chooses September 30, 2018, as the date on which it will approve, reject or initiate the procedures to reject the submitted proposal.
Cboe Global Markets had applied for a license to operate a Bitcoin ETF last July, with high expectations due to the first comments in favor received through the SEC’s official website.
Since last year, the SEC made it clear that without a regulated and decentralized Bitcoin market there will be no ETFs, considering that there is a lack of clarity in Bitcoin legislation. The SEC claims that the regulations are necessary to prevent fraud through this financial tool, which would be similar to company stocks that use assets based on the price of bitcoin and traded on a stock exchange.
The Securities and Exchange Commission also postponed the decision to approve the Bitcoin ETF , requested by the Winklevoss twins, on at least two occasions, so the market has negatively received this update. Furthermore, in June of this year, the brothers put forward a second request for “change of rule.”
According to CoinMarketCap, the price of bitcoin fell below $7,000, standing at the time of writing at $6,500 with a market capitalization of $111 billion.
This event occurs after the cryptocurrency market went on a rally for approximately two weeks of, which involved a 30% rise in the value of bitcoin.
Although the decision has been postponed until the end of September, the SEC has 240 days to communicate a resolution on the matter, but many voices are suggesting that 45 days is enough time to reach an agreement.