SEC rejects VanEck Bitcoin ETF decision until November 14

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The Securities and Exchange Commission (SEC) has extended its review of VanEck’s Bitcoin exchange-traded fund application one last time.

The U.S. securities regulator issued an extension notice on Wednesday, saying it intended to take an additional 60 days to review the proposed rule change. Now, Hopes can expect a response on November 14, 2021, as the opinion calls this day “the date on which the Commission must approve or disapprove the proposed rule change.”

Cboe BZX Exchange first filed a 19b-4 to list VanEck’s Bitcoin Trust on March 1 of this year, starting the clock on an SEC ruling. The agency has continuously kicked the proverbial box on a final decision with previous extensions and a notice seeking additional comment on the proposal.

The Commission can take up to 180 days from the publication date of the case to decide, which would put the decision day on September 15. However, regulators are allowed to take an additional 60 days if deemed “appropriate” and publish their reasoning.

“The Commission considers it appropriate to designate a longer period of time to issue an order approving or disapproving the proposed rule change so that there is sufficient time to consider the proposed rule change and the issues raised in the letters from comments that have been submitted in connection with this, ”the notice said.

The VanEck offering is most advanced in the application cycle, which means it will likely be the first to receive a decision amid the current wave of Bitcoin ETF applications. Issuers were previously at an impasse with the SEC when the Commission rejected the last remaining applications before it, in 2019.

Since then, Canada has approved a number of bitcoin and ether-based ETFs, leading some to believe that approval may be on the horizon. Other issuers have filed requests, including Valkyrie, Fidelity, WisdomTree, Kryptoin and Skybridge, among others.

Still, SEC Chairman Gary Gensler said the SEC is more likely to approve a product related to bitcoin futures before approving one related to the asset itself. Companies like Galaxy and Valkyrie are betting that this is the case, as both have filed ETF applications related to Bitcoin futures.

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