SEC Postpones Decision on VanEck ETF
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The U.S. Securities and Exchange Commission (SEC) has extended the decision-making period for the application to launch Bitcoin-ETF, filed jointly by New York companies VanEck and SolidX. This is stated in a document on the Commission's website.

Initially, it was assumed that Commission meeting will be held on August 10. Officials had to make a decision on changes in the rules of trade at the Chicago Stock Exchange (CBOE), where the fund should trade. However, this date has now been postponed to September 30.

The price of VanEck SolidX Bitcoin Trust shares was set at $200,000. It means that the new ETF will be primarily targeted at institutional investors.

WHAT IS BITCOIN-ETF?

  • Bitcoin-ETF is an exchange fund that will use bitcoin as an underlying asset. It will buy the first cryptocurrency and sell its shares to investors.
  • Investors who buy these securities will be able to earn money on changing the exchange rate of the coin.
  • They will not work directly with digital money, and therefore their assets will be under reliable protection.

WHY IS IT IMPORTANT?

1. Such instruments attract institutional investors to the market. Major players joining the game increases the liquidity of the market, makes it more stable and mature.

2. Experts agree that the new investment tool will have a very positive impact on the crypto-exchange industry and bring it to a fundamentally new level. Bitcoin will significantly increase in price if such exchange funds receive a green light.

3. At the same time, news about prolonging the decision period for Bitcoin-ETF VanEck and SolidX almost immediately affected cost of bitcoin. The сryptocurrency is trading around $6,500 at the time of writing the news (10:00 GMT+1).

4. Earlier, a source in the SEC, who wished to remain anonymous, made it clear that the agency was interested in approving this application.

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