The Bitcoin Exchange Traded Fund (ETF) proposal jointly submitted by VanEck, SolidX and the Chicago Board Options Exchange (CBOE) has been officially registered in the Federal Register.
The applicants submitted the application to the US Securities and Exchange Commission on the 30th of January. The SEC has 45 days to make a decision on the Bitcoin ETF proposal filed by the applicants. The financial regulator will have a choice of approving or rejecting the proposed rule change. If the SEC needs more time to review the proposal, it can request a 3-month extension period to consider the proposal.
The commission has already failed to reject or approve the proposal once, and can potentially delay making a final decision in the next 45 days under existing laws.
Should the SEC approve the proposal, CBOE BZX Exchange would have the green light to list shares of a Bitcoin ETF trust.
How will it impact the cryptocurrrency market?
For many, the approval of a Bitcoin ETF is the most significant event for the top-ranking cryptocurrency, which has been plummeting since early last year. Industry experts believe that ETF will help bring fresh funds into the cryptocurrency realm, thus building a more liquid market.
Mike Novogratz who is perennial Bitcoin Bull and founder of Galaxy Digital has predicted that institutional funds should begin to flow into crypto markets by the 1st quarter of 2019. He believes the entry of institutional investors will trigger the next Bitcoin price rally. Many wall street giants will invest in BTC for fear of missing out (FOMO), according to him.
It’s worth noting the VanEck/SolidX proposal isn’t the only cryptocurrency ETF proposal filed with the SEC. A cryptocurrency start-up Bitwise Asset Management also submitted theirs on the 10th of January 2019. According to Bitwise, the proposal would address the regulatory concerns that doomed previous attempts. Should the regulator approve it, it shares would be listed on NYSE Arca, which trades stocks and options.