The United States Securities and Exchange Commission (SEC) has again postponed its decision on the VanEck Bitcoin ETF proposal. Before taking a decision, the Commission seeks opinions on possible market manipulation.
The US SEC announced yesterday that it has postponed its decision on the VanEck Bitcoin Exchange Traded Fund (ETF) again. It did after the regulator postponed the decision on the same Bitcoin ETF proposal in April.
According to the regulator, the postponement is intended to allow it to seek public consultations on concerns about the manipulation of the cryptocurrency market. Analysts believe the regulator is concerned that it does not have the necessary monitoring of crypto exchanges to ensure that it has taken adequate investor protection measures.
The SEC sought public opinion on the proposed ETF’s vulnerability to tampering and its power to prevent fraudulent activity. The regulator is also asking for public comments on the liquidity and transparency of the BTC markets.
The desire to know about the suitability of Bitcoin as an underlying asset for an ETF implies that the supervisory authority is still unsure whether Bitcoin is considered an asset class. The market capitalization of the leading cryptocurrency grew above the $ 1 trillion mark earlier this year.
With market capitalization and adoption increasing, several regulators in other parts of the world are taking active steps to regulate emerging markets. However, US regulators may still be unsure whether Bitcoin is positioned as an asset class.
Several analysts and market experts believe that US approval of a Bitcoin ETF would be key to widespread adoption of cryptocurrencies. Crypto-focused ETFs are already available in a few countries, including Canada and Brazil.
The VanEck Bitcoin ETF proposal was filed towards the end of 2020, and the SEC has now postponed its decision twice.