SolidX bitcoin ETF decision delayed
A decision on the flagship SolidX-VanEck bitcoin ETF has been postponed by the SEC until August, which will come as no surprise to the crypto community. A further delay is also possible, pushing the decision date back to October.
Delays have proven the norm for every bitcoin ETF, as the SEC often uses the maximum time available to it before making a final judgment – postponing each ETF’s application for multiple stages. The BitWise bitcoin ETF was postponed just last week.
In this instance, however, the decision may have come as a surprise, since some analysts had suggested an outright approval or rejection might be plausible. Securities lawyer Jake Chervinsky had tweeted his belief that the SEC could reject the VanEck proposal, due to the fact that it usually bundles decisions about different ETF applications together – but this time is different.
4/ Last Tuesday, two days before the Bitwise deadline, the SEC decided to delay the ETF & issued its grounds for disapproval here: https://www.sec.gov/rules/sro/nysearca/2019/34-85854.pdf ….
But the SEC only delayed Bitwise that day. It didn’t (and still hasn’t) made a decision on VanEck. That’s really unusual.
Chervinsky argued that this suggests the VanEck proposal will not be treated the same way as the Bitwise one, i.e. delayed. Instead, it will be simply rejected or approved – with rejection more likely in his opinion. This was due to current market conditions, and the fact that the reasons for the Bitwise delay apply equally to VanEck’s application.
His series of tweets ends:
17/ So, heading into Monday, here’s how I view the probabilities:
– Delay: 75.0%
– Denial: 24.9%
– Approval: 0.1%
I’ll keep you updated as the process plays out.
In the event, the expected postponement was the outcome, with the SEC’s statement reiterating the previous position that ‘the Commission seeks and encourages interested persons to provide comments on the proposed rule change.’