SEC postpones decision on NYDIG physical Bitcoin ETF until March

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SEC postpones decision on NYDIG physical Bitcoin ETF until March For Hannah perez

The US regulator again delayed the verdict of another spot Bitcoin ETF. Will this 2022 be decided to give the long-awaited ‘yes’ to a product of this type?

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The United States Securities and Exchange Commission (SEC) has again decided to delay its decision on an exchange-traded fund (ETF) of Bitcoin cash. This time, it’s about the NYDIG request.

The regulatory agency this week filed an extension notice for the ETF of Bitcoin of NYDIG, a subsidiary of the asset manager Stone Ridge Holdings Group. In a release, the SEC indicated that it has postponed the verdict for a period of 60 days, which means that NYDIG can now expect a response on its proposal before March 16.

The US federal regulator highlighted in this regard:

The Commission considers it appropriate to designate a longer period for issuing an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised in the comments that have been filed in connection with it. .

SEC remains skeptical of a physical Bitcoin ETF

NYDIG submitted a proposal for an ETF of Bitcoin in cash in February of last year. At the time, an official filing revealed that the fund would track the price of the main cryptocurrency while the BTC funds would be held in trust. Also, the banking giant Morgan stanley serve as an authorized participant of the ETF, which would be traded on the exchange NYSE Arca.

The US regulator was expected to issue a decision on the investment product by January 15. of this year; however, as has happened with other applications of its kind, the SEC has now extended the deadline to approve or reject the proposal.

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An ETF is an investment product that allows investors to buy shares that represent an asset without having to deal with it directly; can be currency, gold or Bitcoin. Cryptocurrency enthusiasts have long pursued the launch of an ETF of Bitcoin, a product that they consider will open the doors to traditional investors, boosting the price of the asset.

Last year the SEC approved for the first time a futures ETF of Bitcoin. The arrival of this product to the market in October marked a milestone for the crypto space and caused a rise in the price of the cryptocurrency, at that time. Other similar funds have since gone public. However, a futures ETF is not the same as a spot one. The first is based on contracts that bet on the future price of Bitcoin, while the second tracks the asset itself.

The US regulators have not yet approved the first ETF of Bitcoin cash (also called “physical”); and in general they have rejected a large list of requests of this type. The latest term extension to the NYDIG ETF comes after the decisions about the products of Bitwise, Grayscale Y WisdomTree they were postponed in December.

Meanwhile, various analysts have highlighted that there is great interest in the US market for a physical Bitcoin ETF, with some even anticipating that 2022 could be the year that the first one is finally approved. However, SEC Chairman Gary Gensler has shown little enthusiasm for the approval of such a fund.

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Sources: Decrypt, The Block, CryptoBriefing, archive

Article versioned by Hannah Estefanía Pérez / Daily bitcoin

Image from Unsplash

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