The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the NYDIG Bitcoin ETF by two months, according to an advisory. This is another Bitcoin ETF decision that has been delayed by the regulator.
The United States Securities and Exchange Commission (SEC) has delayed its decision on Stone Ridge Holdings Group’s NYDIG Bitcoin ETF, according to a notice published on January 4, 2022. This is another bitcoin ETF that has been delayed by the regulator. . The decision will now be delayed for a maximum of two months.
Bitcoin ETF delays
The original deadline for the decision was January 15, 2022, which was quickly approaching. The SEC has decided to extend the deadline for approving or disapproving the rule change, as has been done in the past.
The VanEck Bitcoin ETF has been delayed several times and has received a lot of attention. Although it was ultimately rejected, the delays were implemented so that the SEC could receive public comments on the investment vehicle.
The SEC has presented investor protection as one of the main reasons for the delays. President Gary Gensler told the US Congress that the crypto market needs more investor protection, and it has been a thorn in the side of the market. However, some have said the delays could have ramifications for the market, including SEC Commissioner Hester Peirce.
Regulation first, then ETFs
The SEC has spoken out on the need for regulation and better investor protection measures before authorizing an ETF. It recently rejected Bitcoin Valkyrie and Kryptoin spot ETFs, which continues the trend to reject cash ETFs.
However, bitcoin ETFs based on futures have been approved and Gensler accepted them more. The ProShares Bitcoin strategy performed extremely well, and the Valkyrie Bitcoin Futures ETFs performed well as well.
It is clear that the SEC wants to pursue regulatory decisions first, although it is not clear when exactly the United States will release a broad regulatory framework. It’s certainly in the works, and 2022 seems to bring some news in this regard, which could dispel the uncertainty surrounding ETFs.
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