The US Securities and Exchange Commission (SEC) has to make an important decision related to the much-anticipated bitcoin ETF, or the bitcoin-based exchange-traded fund.
This decision is expected by Friday, as the SEC has an deadline fixed on March 11st to make the approve or disapprove a proposed rule change that would allow the creation of the first worldwide bitcoin ETF.
But, because the 11st falls on a Saturday, this decision could come before that date, maybe on Friday.
The proposal came three years ago, in mid 2013, by investors Cameron and Tyler Winklevoss.
If the fund receives approval, several experts speculated that bitcoin price could grow and maybe this expected approval already drove the bitcoin price in recent weeks, setting new all time highs in the recent period.
In fact, Bitcoin price neared $1,300 in recent days, reaching $1,293.47 on 3rd March.
By the way, bitcoin price kept falling back to $1,300, experiencing a drop on 7th March, when markets drop below $1,200 for a few hours.
Otherwise, if the SEC decides to reject the proposal that would allow the Bats Global Exchange to list the bitcoin ETF, experts said that the digital currency price would be negatively affected.
Phil Bak, CEO atACSI Funds explained that generally the SEC wants to avoid the appearance of “publicly rejecting an ETF”, so if the agency didn’t plan on approving a fund, it would ask for the filing to be pulled ahead before any final decision.
“In this case, the government agency may want to show the world it is unsure about bitcoin. Alternatively, it could also be that the advocates want to support it to the end and let this proposed fund get its day in court, rejection or not.”
In the lack of definitive statements published by the SEC, it’s really easy to understand why a common return of uncertainty has emerged during this week.
Arthur Hayes, CEO at BitMEX, explained:
“I have heard good arguments for and against the ETF being approved. At this point it is a coin toss.”
At the moment people who are waiting for the SEC’s decision canno do anything instead of only watching and waiting for the 11th March deadline.
ETF expert and co-founder at RagingBull, Jeff Bishop, commented that the SEC could make its decision further past the 11th, also because of the recent price gain.
“I have the feeling they will find a way to delay this even more though. With bitcoin at all-time highs and the SEC having a terrible record for allowing new ETFs to come to market at absolute tops, they will likely push back on this until things cool a bit. It should be up to investors to decide the true price of bitcoin. The more liquidity and options [there are] to trade it, the more transparent and accurate the pricing will be. It should not be up to a government agency to withhold something like this from the public.”
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