The Securities and Exchange Commission (SEC) in the US has once again deferred the review of two bitcoin exchange-traded funds (ETFs). This takes the decision-making into the second month of the new year.
The regulatory body issued a notice saying a longer period is fitting. The SEC now has ample time to take a decision for Bitwise Bitcoin ETP Trust and Bitcoin ETF. It has 45 days to review.
The regulatory body had rejected VanEck’s bitcoin ETF. VanEck had filed an application for bitcoin ETF in March through the Cboe BZX Exchange. SEC said didn’t go ahead with it because Cboe failed to define how it would prevent fraud of the same.
SEC gave approval to ProShares Bitcoin Strategy ETF – the first future’s bitcoin-based exchange-traded fund. In 2021, the regulatory body has recorded a flood of applications for cryptocurrency ETFs. This came after Gary Gensler, SEC Chairman announced that he was game for futures-based products.
Investors have been showing interest in cryptocurrency-based ETFs, especially bitcoin. And this is despite the world’s most popular digital asset’s high volatility. Analysts believe one of the reasons could be that the global cryptocurrency market remains unregulated.
Other reasons include that capitalization means growing wealth. ETFs give investors the ease to diversify. And with a bitcoin ETF, investors don’t actually have to go through the hectic process of trading the crypto itself. Moreover, they don’t have to worry about security and storage. Furthermore, 2022 will bring new highs for cryptocurrency-based ETFs.