The race for the first approved bitcoin exchange-traded fund hit a road bump this week, when the Securities and Exchange Commission delayed the review of just one of two ETFs in the approval queue; The VanEck Bitcoin Trust.
Still, the firm is sticking by its view that Main Street investors will benefit from an easier way to invest in cryptocurrency.
“VanEck continues to believe investors will be well served by having a publicly registered Bitcoin product and we’re committed to working with regulators during their period of consideration,” said Ed Lopez, Head of ETF Product with VanEck in a statement to FOX Business.
The SEC, in a filing, explained its decision to delay the review and possible approval.
“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,” wrote J. Matthew DeLesDernier, Assistant Secretary SEC.
The second, similar bitcoin ETF, WisdomTree’s Bitcoin Trust, remains on track the firm confirms to FOX Business.
Inquiries to the SEC requesting more specifics on the delay were not immediately answered.
Bitcoin, at the $57,000 Friday, is marching back to record levels.
While other cryptos are seeing more active trading including Etherum which hit a new record this week of $2,700.
SEC Chairman Gary Gensler started his new job on April 17. Many on Wall Street predict Genslers’ tenure will be friendlier to cryptocurrencies, compared to his predecessors. Gensler taught a cryptocurrency class during his recent time at MIT’s Sloan School of Management.
“I’m hopeful that with a new chairman here at the SEC that we will be able to take a fresh look at some of the reasoning that we used to deny bitcoin exchange-traded products in the past,” said SEC commissioner Hester Peirce on FOX Business’ “The Claman Countdown” during an April interview.
She also noted the U.S. is falling behind in the competitive world of crypto investing.
“Frankly, Canada is ahead of us now, they not only have bitcoin exchange-traded products, but they have exchange-traded products based on Ether” she added, which is currently the second-largest crypto-asset behind bitcoin with a market cap of nearly $300 billion, as tracked by Coindesk.