Leading financial regulator in the United States, the Securities and Exchange Commission (SEC), has revealed that it would need more time to review the application of Vaneck for a Bitcoin exchange-traded fund (ETF). This delay comes when the new head of the agency, Gary Gensler, reviews all ETF applications submitted to the regulator.
Usually, the SEC reviews and makes decisions on these applications within 45 days. However, it would need more time to review VanEck's application due to its uniqueness.
VanEck's bitcoin ETF plans to give investors direct exposure to the asset class. This makes it different from other bitcoin ETFs who give investors exposure to crypto via stocks of related companies
Due to this level of uniqueness, the financial regulator might be delaying its decision in order to study what this might mean for retail investors when it comes to the volatility and manipulation of the coin.
Per the filing made by the SEC, the agency wrote: "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."
It is important to note that the stance of the U.S government towards crypto remains unclear. The government has divergent views about the industry, as can be seen in Gary Gensler, who is known to favor digital assets. In contrast, Janet Yellen, the Treasury Secretary, has a history of hostility towards crypto.