The SEC said it needed more time to consider the proposal and comments received on it.

In an announcement today the Securities and Exchange Commission deferred its decision on the application by the Cboe BZX Exchange on March 1, 2021, to list shares of the VanEck Bitcoin Trust through a proposed rule change. (Coin Desk)

The SEC must either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved –  within 45 days of the publication of notice of the filing of a proposed rule change. It may also elect to further extend the examination period.

Though the initial 45-day period for the VanEck ETF expires only on May 3, the SEC has gone ahead and extended it to June 17.

VanEck BTC ETF: The SEC needs more time

“The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the comments received. Accordingly, pursuant to Section 19(b)(2) of the Act, the Commission designates June 17, 2021, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change,” the SEC said today.

The action by the SEC was expected.

It has rejected all previous applications for a bitcoin ETF. Its apprehensions stem from bitcoin’s price volatility, crypto frauds, and the high volumes of trading in bitcoin that take place on unregulated foreign exchanges where price could be manipulated.

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