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The clock has just begun the last effort to launch a Bitcoin Exchange Traded Fund.
The US Securities and Exchange Commission (SEC) has announced the start of its Feb. 11 review of a proposal to amend the rules of a bitcoin ETF filed by NYSE Arca and Bitwise Asset Management. The proposal itself was published in the Federal Register on February 15. which means that the regulator has 45 days to make its initial decision to approve, reject or extend the proposal.
The SEC has a maximum of 240 days to make a final decision on approval or rejection of the ETF.
Members of the general public who wish to file responses to the rule amendment proposal have three weeks to submit their comments.
Many supporters of Bitcoin ETFs believe that these funds will attract new investors and increase market liquidity.
NYSE Arca and Bitwise have announced plans to launch a Bitcoin ETF earlier this year, filing the same day rule change proposal. However, due to the closure of the government, the SEC did not publish the record in the Federal Register, which means that the agency was not reviewing the proposal.
That changed today, with the Friday edition of the register starting the last countdown.
The SEC still has to approve an ETF in bitcoins, reject several and ask others to withdraw their bids.
However, SEC Commissioner Robert Jackson recently stated that he thought that a proposal would be approved "forward", anticipating that sooner or later a proposal would fit all the guidelines of the company. Regulatory body.
That being said, not everyone thinks that an ETF will bring in new cash, as Nik Bhatia, a Bitcoin badyst, has already told CoinDesk that existing fund products, such as Bitcoin gray, could already serve the same purpose.
More recently, VanEck and SolidX have withdrawn a joint proposal filed with Cboe BZX Exchange due to the recent closure of the US government. The proposal, filed for the first time in 2018, was the subject of a final decision on February 27 and was widely considered a strong candidate for approval.
However, discussions between its promoters and the regulators ended after the closure of the site. Jan Van Eck, CEO of VanEck, explained that companies thought that it would be better to withdraw the proposal and file it at a later date rather than hoping that it would be approved a technicality. . The companies again submitted the proposal the following week.
Although the SEC has published the VanEck / SolidX proposal on its website, it has not yet been registered in the Federal Register, which means that the clock has not yet started for this ETF.
Editor's note: This article has been updated with additional information.
SEC image via Mark Van Scyoc / Shutterstock
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