Home News SEC delays decision on NYDIG’s Bitcoin ETF proposal

SEC delays decision on NYDIG’s Bitcoin ETF proposal

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The United States Securities and Exchange Commission (SEC) has delayed its decision to approve NYDIG’s Bitcoin (BTC) spot exchange-traded fund (ETF).

Thus, the commission now has until March 16 to decide whether or not to approve or reject NYDIG’s application.

The SEC decided it was “appropriate to designate a longer period within which to issue an order approving or disapproving” the ETF in a notice released on January 4. BTC’s price did not flinch in response to the news, holding tightly wrapped under $47,000.

Why the process is taking so long

Photo of Bitcoin coin with ETF text Put on wooden floor, Concept Entering the Digital Money Fund.

An SEC bigwig has spoken out in favor of a spot ETF, which is an encouraging development. While the crypto community is used to rejections and delays in BTC spot ETFs, SEC Commissioner Hester Peirce is confused as to why the process is taking so long.

“I can’t believe we’re still talking about this as if, you know, we’re waiting for one to happen […] We’ve issued a series of denials even recently, and those continue to use reasoning that I think was outdated at the time”. The commissioner said in an interview with industry media.

The NYDIG requested an ETF for the first time on February 16, 2021. And the most recent date for approval was January 15. It would be the first spot Bitcoin ETF in the US if approved.

ETF with a focus on metaverses

BTC can be purchased in the United States through Valkyrie’s latest ETF or ProShares BTC futures contracts fund. Investors, on the other hand, continue to yearn for a way to obtain direct exposure to the asset.

According to ETF.com, over 20 BTC-related ETFs are pending approval or rejection in the United States, thus 2022 is undoubtedly the year.

Recall that ProShares has filed an application with SEC to launch an ETF with a focus on metaverses. If approved, the ProShares “Metaverse Theme ETF” will repeat the dynamics of the Solactive Metaverse Theme Index (SOMETAV). It consists of companies that provide or use the technologies underlying metaverse-related products and services. Meta Platforms (formerly Facebook), Apple and Nvidia have the largest weight in the index.

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