In Brief:
- The US SEC said that it delayed its decision on considering the approval of the bitcoin exchange-traded fund (ETF) proposal from NYDIG.
- It has extended the time period for deciding on the proposal for an additional 60 days and will give its decision by March 16.
On January 04, The U.S. Securities and Exchange Commission(SEC) released a notice saying that it delayed its decision on considering the approval of the Bitcoin exchange-traded fund (ETF) proposal from NYDIG, which would be based on the price of bitcoin held in a trust.
The SEC said it is appropriate to designate a longer period within which it will issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposal.
The deadline by the Commission was originally on January 15. However, it has extended the time period for deciding on the proposal for an additional 60 days.
Thus, the regulatory body will make a decision about whether to allow the bitcoin ETF from NYDIG, a subsidiary of Stone Ridge to trade on Intercontinental Exchange Inc’s NYSE Arca by March 16.
Ironically, it is atypical of SEC to keep on delaying the decision for spot ETF proposals before finally rejecting their application. And with this postponement, NYDIG’s proposal can also be expected to meet the same fate as VanEck’s Bitcoin ETF which was rejected citing issues “fraudulent and manipulative acts and practices” in the markets where bitcoin is traded.
