The decision on the Wisdom Tree Bitcoin ETF is postponed again by the SEC
Supporters also feel that a bitcoin ETF will increase access to the cryptocurrency markets. Because an ETF is regulated, certain fund managers, financial institutions, and even individual investors may prefer to buy ETF shares rather than bitcoin directly.
The Securities and Exchange Commission (SEC) has traditionally taken as long as it could to make a final decision on bitcoin ETF applications, so Tuesday's delay is unsurprising. This is the second active proposal to reach this stage of the SEC regulatory process in 2021, following a similar application filed by VanEck, demonstrating that the process for potentially approving an ETF is still moving forward.
SEC chairman Gary Gensier is still concerned about the possible manipulation of the Bitcoin market as well as protection for investors. It is because of market manipulation reasons that is the main reason for the SEC not to approve the existence of bitcoin ETFs, and because of his testimony, the chances of bitcoin ETFs getting approval from the SEC are very small.
How Long Will It Be Postponed?
Wisdom Tree's proposed Bitcoin ETF has been referred to the SEC for comment. On July 13, the SEC delayed its judgment on the Wisdom Tree Bitcoin ETF by requesting public feedback. This request allows members of the public to express their opinions on whether they agree or disagree with the belief.
The Commission requests that interested parties submit written submissions of their opinions, data, and arguments about the issues listed above, as well as any additional concerns they may have with the plan, according to the SEC announcement. Within 21 days after publication, public comments must be submitted to the Federal Register, and complaints must be filed within 35 days.
The SEC's goal is to convince the public that the proposed Bitcoin ETF is susceptible to manipulation. The proposed trade properly protects against deception and manipulation. The transaction demonstrates that the manipulation concerns previously expressed by the Commission were adequately attenuated to the point where they were proportional to quantifiable investor protection concerns, according to the SEC's news release.
The application was first filed with the SEC on March 26, 2021, and the Commission requested public comment in April. The SEC imposed a longer deadline for approving or rejecting the proposed rule modifications on May 26. Many similar apps are currently being investigated by the SEC, including another WisdomTree app for EtherETF. Aside from additional delays, a decision on a Bitcoin ETF could be made later this year.
However, there are still many people who believe that the SEC will approve bitcoin ETFs because access to the cryptocurrency market will increase in the future and investors will be facilitated by the bitcoin ETF technology and hope that the SEC will immediately make a decision regarding ETFs in the near future.
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