Countdown Restarts for SEC Ruling on CBOE-VanEck Bitcoin ETF

The US Securities and Exchange Commission (SEC) might make an initial decision on two Bitcoin ETFs proposals by April 5.

A Bitcoin ETF proposal filed (for a second time) by SolidX, VanEck, and the Cboe BZX Exchange would be formally published on the Federal Register on Wednesday, starting the initial 45-day clock for rejection, approval, or extension. The proposal was posted on February 13 on the SEC page.

After the proposal is officially published, the public will be given three weeks from February 20 to submit their responses. The SEC will then have another three weeks to decide or give itself an extension.

The proposal is currently posted in the Federal Register website’s Public Inspection section. As the page indicates, “only official editions of the Federal Register provide legal notice to the public and judicial notice to the courts,” while the latest version of the proposal states it is scheduled to be published on Wednesday.

The SolidX/VanEck proposal will join one filed by NYSE Arca and Bitwise Investment Management. The Bitwise/NYSE Arca proposal, previously filed in 2018, was widely expected to be the first to obtain the SEC’s approval. The proposal has been withdrawn, however, and re-filed in January.

If approved, an ETF could provide new liquidity into a Bitcoin market displaying signs of recovery. But it is worth noting that the SEC can have a maximum of three extensions on a rule change proposal. Therefore, it could take months before reaching a final decision on either ETF.

Although the formal comment period has not yet started, the SolidX/VanEck proposal is already gaining feedback.

Sam Ahn inquired about how the firms define Bitcoin’s intrinsic value. Ahn said the question of intrinsic value is crucial for investors who might consider buying into the ETF.