The United States Securities and Exchange Commission (SEC) has delayed its decision on the NYDIG Bitcoin ETF by two months, according to a notice posted on its official website. This is yet another report from the American stock market policeman who now has a long line of Bitcoin ETFs to approve.
The United States Securities and Exchange Commission (SEC) has delayed its decision on Stone Ridge Holdings Group’s NYDIG Bitcoin ETF, according to a note released on January 4, 2022. This is not the first time the financial regulator has postponed its decisions on such ETFs. According to the SEC, the decision will be delayed for up to two months.
Several decisions postponed
The original deadline for the decision was set for January 15, 2022, which is less than two weeks away. As with previous Bitcoin ETFs, the SEC has decided to extend the approval or disapproval timeframe.
The approval of VanEck’s Bitcoin Cash ETF has been repeatedly delayed. It has also sparked a lot of discussion within the crypto community. Although it was ultimately rejected, the postponements allowed the SEC to receive public comment on the investment vehicle.
The SEC has presented investor protection as one of the main reasons for the delays. Its chairman, Gary Gensler, told Congress that the crypto market needs more investor protection, and that has always been a problem within the industry. However, some believe the delays could have ramifications for the market, including SEC Commissioner Hester Peirce.
Regulation first, Bitcoin ETFs later
The SEC has always insisted on the need for regulation and better investor protection measures before authorizing ETFs. Recently, the financial regulator rejected both Valkyrie and Kryptoin Spot Bitcoin ETFs. Until now, the SEC has never approved a Bitcoin Cash ETF.
However, several Bitcoin futures ETFs have been approved. Gary Gensler does not seem to be against this type of product and the futures ETFs that have already been launched have been extremely successful. For example, ProShares Bitcoin Strategy Fund has achieved remarkable results since its launch. Valkyrie’s Bitcoin futures ETFs also performed well.
It is obvious that the SEC is waiting for regulatory decisions before deciding on Bitcoin spot ETFs. Having said that, we don’t know when the United States will establish a broader regulatory framework. It’s certainly in the works and it looks like the crypto market will be better regulated in 2022. Something that could clear up the uncertainties around ETFs.
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