SEC Delays Cryptocurrency ETF Decisions Amid Market Concerns

(Bloomberg) -- The U.S. Securities and Exchange Commission again delayed a decision on approving two Bitcoin exchange-traded funds, dealing another blow to those in the cryptocurrencies community holding on to the belief that a favorable decision was imminent.

The regulator postponed until October a ruling on whether listing rules can change to allow the two funds to start trading. Decisions on both the Bitwise Bitcoin ETF Trust and the VanEck SolidX Bitcoin Trust have been repeatedly pushed back.

Bitcoin was weaker much of the day ahead of the decision and closed down about 3.8% to $11,418 on Monday in New York. Representatives for Bitwise didn’t immediately return requests for comment. The SEC also did not return requests for comment.

Other applications for approval -- which at one point exceeded 25 requests -- have also been delayed. The agency has also rejected an exchange’s request last year to list a Bitcoin ETF backed by Tyler and Cameron Winklevoss.

The head of the commission has said previously that concern over a lack of investor protections makes it unlikely his agency will approve a Bitcoin ETF anytime soon. The chairman, Jay Clayton, said he remains worried about theft and manipulation on exchanges.

To contact the reporters on this story: Vildana Hajric in New York at vhajric1@bloomberg.net;Olivia Rinaldi in New York at orinaldi1@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave Liedtka, Rita Nazareth

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