SEC delays VanEck’s spot Bitcoin ETF options listing, raising concerns among crypto advocates awaiting regulatory approval.
VanEck, an asset management firm, has opposed the United States Securities and Exchange Commission (SEC)’s apparent trend of postponing decisions on Bitcoin ETF amendments and other crypto ETF applications. In addition to these delays, the regulator fails to provide the community with relevant feedback. Matthew Sigel, VanEck’s Head of Digital Assets Research, has criticized the regulator, asserting that investors are entitled to a higher communication standard than the current silence.
Product Delay for VanEck Bitcoin ETF
At first, Sigel noted on X that the SEC has postponed its decision on CBOE’s 19b-4 filing to list options on VanEck Bitcoin ETF with the ticker symbol ‘HODL.’ This is also the case with the proposed In-Kind creations and redemption for the same spot Bitcoin ETF offering.
According to Sigel X’s post, the regulator’s announcements of such delays are rarely accompanied by an explanation of their rationale. He referenced Hester Peirce, the head of the Crypto Task Force, a recently established SEC unit.
Applicants are left to ponder the potential deficiencies of their applications without any explanation. Matthew Sigel described the entire procedure as “confusing and frustrating.”
The VanEck Executive, speaking on behalf of these applicants, observed that Bitcoin ETF stakeholders deserve transparency. Sigel also stated that investors are entitled to a prompt response, a task that appears to exceed the SEC’s capabilities.
Why is the delay in issuing cryptocurrency exchange-traded funds (ETFs) increasing?
Recently, there has been an increase in asset managers whose crypto ETF application decisions have been postponed. The SEC postponed its judgment on the CoinShares spot XRP ETF on May 22.
Rather than issuing a decision, the regulator requested public comments and rebuttals regarding these filings. Consequently, the agency revised the original May 26 deadline to August 24, which increased the deadline.
The SEC also delayed Fidelity’s request to incorporate in-kind redemptions into its spot Bitcoin ETF and the Ethereum counterpart. In this instance, The regulator did not specify a timeline for the potential final decision. Matthew Sigel maintains that the Commission’s intentions are unclear but advocates for further investigation.
More Crypto ETF Products Are Under Consideration?
Asset management firms may experience a decrease in the pace of their applications in light of the recent developments surrounding Bitcoin ETF and related offerings. Conversely, it is unlikely that these entities will relent anytime soon, as they are not currently doing so.
Asset management firms have submitted applications to list and trade funds associated with XRP ETFs, Polkadot, Solana, and Cardano. If the application for additional altcoin ETFs persists, it will not be unexpected.
Their inception is likely because the United States is currently under an administration that places a high value on cryptocurrencies. The Securities and Exchange Commission (SEC) has also continued to acknowledge these filings. It recently recognized Canary’s staked Tron ETF filing, which sparked optimism in the Tron and broader crypto community.
