For more than a year, various companies have been trying to get permission from the SEC to trade Bitcoin-ETF contracts. Last weekend, the Securities and Exchange Commission once again postponed the decision. Now it is considering applications from Bitwise and VanEck.
Already several companies tried to create an index fund nominated in cryptocurrencies. However, the US regulator does not agree to register new assets. It refers to the fact that there are several currently unsolvable problems.
Exchange Traded Fund is a type of security. More precisely, it is a fund of indices, which is traded on the stock exchange. As a basis for calculating its value, the price of any asset that has circulation in commodity, commodity or stock markets is taken.
The regulator is not yet sure that businessmen will be able to ensure the supply of fair quotes for trading. The fact is that the cost of cryptocurrency at various trading platforms is significantly different. And so far there is no sufficiently precise mechanism for setting a consolidated price.
It had complaints about the cryptocurrency storage procedure. However, at the moment these problems are being successfully solved. Although Bitwise and VanEck went their separate ways, they have strong arguments for recognizing Bitcoin-ETF.
Bitwise, in its proposal to the SEC, addressed the issue of pricing based on spot cryptocurrency contracts. This allows you to more accurately calculate its value due to the increased liquidity of the asset.
The spot market involves the transfer of ownership of an asset at the time of transfer of funds. Due to this, it is less susceptible to volatility and various manipulations.
In their bid to negotiate a Bitcoin-ETF contract, a company from San Francisco, Bitwise Asset Management, offered to use real cryptocurrency supply prices, which should help determine the choice. It was submitted for review on February 15, and the commission has 240 days to make a final decision.
VanEck has a long relationship with the SEC, its application was filed almost a year ago. However, the final date for making a decision on Bitcoin-ETF fell on the period of the shutdown, which could adversely affect subsequent events. The fact is that the regulator simply did not work these days.
According to US law, if the SEC did not make any verdict on the VanEck application, it would automatically be considered approved. However, this could be regarded as pressure on the regulator, which would further lead to problems.
As a result, VanEck decided to withdraw its application and submit a new one at the end of January. Now the SEC has time until autumn to make a final decision. However, every six months the agency must declare a postponement.