The regulatory agency hopes to conduct an additional review of the ETF. Typically, it takes the SEC 45 days to determine if a security is allowed to trade. The 45-day window for the VanEck Bitcoin ETF would have ended on May 3 if the SEC had not extended the deadline.
“The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the comments received,” J. Matthew DeLesDernier, assistant secretary at the SEC, said.
Bitcoin ETFs do not directly own the cryptocurrency, but instead, have a portfolio of stocks that have exposure to blockchain technology. The SEC has expressed concern about the extreme price volatility and fraud involved with cryptocurrency. Furthermore, the SEC has expressed concern that 75 percent of bitcoin trading occurs offshore on unregulated foreign exchanges.