2018 saw the production of many ideas for a Bitcoin Exchange Traded Fund (ETF) that could be set up to make institutional investment easier for large companies and companies. The idea of a Bitcoin ETF is that it makes Bitcoin investments more mature and more accessible to large companies, all of which will undoubtedly put a lot of money into Bitcoin if investment is made a little safer for them. This is essentially exactly what the Bitcoin ETF aims to achieve.
What we have seen in 2018 is a number of applications to open a Bitcoin ETF filed with the United States Securities and Exchange Commission (SEC). These applications were retained for a number of months at the discretion of the SEC, because the SEC can not decide on what grounds they must approve an ETF. This is a highly unregulated industry and therefore the SEC does not have a rule book to refer to, so the applications must be reviewed by people for a long period of time to ensure that the SEC does not ruin it.
The most prominent ETF application currently comes from VanEck, a New York Investment Management Company that works with institutional investors on a daily basis. Yesterday, the SEC announced that they will postpone the decision for this application, pushing back the deadline to 27 February 2019. This is important given that a final decision had to be taken in August 2018 before the decision was taken until the end of September 2018, and then, December 2018.
The official SEC Announcement sounds like this:
"Self-regulatory organizations Cboe BZX Exchange, Inc.; Notice of designation of a longer period for action by the Commission regarding procedures to determine whether a proposed rule should be approved or not approved Change of listing and trading of shares of SolidX Bitcoin shares Issued by the VanEck SolidX Bitcoin Trust "
"The Commission considers it appropriate to designate a longer period within which an order should be issued in which the proposed amendment to the rule is approved or rejected so that it has sufficient time to consider this proposed change of policy. pursuant to Article 19 (b) (2) of the Act, on 27 February 2019 as the date on which the Commission approves or rejects the proposed amendment of the rule (File No. SR-CBOEBZX-2018 -040). , by the trade and markets department, on the basis of the delegated authority. "
The SEC seems to have the habit of constantly changing these terms, which almost always causes the markets to plunge into the process. Is there something more wrong with the game or is the SEC really struggling to come to an agreement?