The Securities and Exchange Commission, SEC will decide on November 14 whether or not to allow VanEck Bitcoin EFT to trade.
VanEck’s Spot Bitcoin ETF Decision and the Reluctance
The SEC has only two days, that is up to November 14, to decide whether it is for or against VanEck’s Spot Bitcoin ETF. However, the decision of the SEC approving Bitcoin ETF is not something new. Previously, there have been several delays. This has taken place on two occasions. However, they will have to decide with the depletion of the maximum 240-day time frame set for the review.
Notably, the crypto optimism which was there is no longer present. This results from several things. First, it is essential to note that regulators have a significant impact on such decisions. For instance, Gary Gensler, SEC Chair, clearly indicated their reluctance to expand Spot Bitcoin ETF. He mentions this can only happen in the presence of legislation that clearly defines the particular regulatory agency that controls the crypto spaces.
Besides, the crypto will have to face demanding reporting requirements, thanks to the legislation in the recent infrastructure bill. Also, on August 3, at the Aspen Security Forum, crypto investors’ optimism on Bitcoin ETF was crushed when Gensler noted a lack in the crypto space; more protection for the investors.
There has been a lot of reluctance in approving Bitcoin ETF. This has made various people pessimistic about having the approval of a Spot Bitcoin ETF.
The New Infrastructure Bill
As mentioned earlier, this bill can affect Bitcoin, causing the investors to be pessimistic. The Congress has already passed it, and it now awaits the signature of President Joe Biden.
The bill has two provisions tucked in it, and they all affect crypto investors. The first one has to deal with any digital asset worth $10,000 or more. Whoever receives the asset must collect information on the sender of the asset. There is also a tax form for the person to fill. It gives the Internal Revenue Service description of the transaction.
On the other hand, the second provision redefines a “broker.” This creates new tax reporting requirements. Therefore, crypto is sure to experience the negatives of the New Infrastructure Bill. However, with the timeframe available, some changes can be made. These provisions have until 2024 to be fully in effect.
Therefore, since there is time for certain fixes in legislation, the crypto industry can take advantage of that.
How Soon Can Bitcoin ETF Become a Reality?
If you are a crypto enthusiast, you might wonder how long Bitcoin ETF will have to wait. Well, the sad truth is, it might take some years. One analyst mentions that it can go further into 2022 and beyond. Therefore, they might still be pessimistic about it.
Besides, many aspects of the crypto space must be considered before this takes off. This calls for clarity in the regulatory authority in charge. Until then, crypto lovers can only be optimistic.
A Decision and Expectations
Crypto enthusiasts and investors are waiting for the decision, which will be taking place in 2 days. Will SEC’s decision on VanEck’s Spot Bitcoin ETF be positive or negative? As they wait, they can only be optimistic.