The US Securities and Exchange Commission delayed its decision on a proposed spot bitcoin exchange-traded fund from NYDIG another 60 days.
The deadline, which was previously January 15, is now March 15, according to a Tuesday notice from the regulator. The two additional months will give the SEC “sufficient time” to weigh the proposal from NYDIG, a subsidiary of asset manager Stone Ridge Holdings Group, the notice said.
The delay follows a pattern of the SEC punting decisions on spot bitcoin ETFs, which would track the real-time price of the cryptocurrency. Similar proposals from Valkyrie and Kryptoin were rejected just before Christmas on the grounds that they didn’t meet the SEC’s standard to prevent fraud and manipulative practices.
The SEC has, however, approved several bitcoin futures ETFs, including ones from ProShares and VanEck last year. SEC Chairman Gary Gensler has been much more accepting of the bitcoin futures products, previously citing a 1940 law that provides “significant investor protection” for mutual funds and ETFs.
Meanwhile, Canada approved spot bitcoin ETFs last year, giving crypto enthusiasts hope that the SEC would be next.
But Gensler has remained wary. In August, he urged Congress to give the SEC more regulatory authority over the now $2 trillion market for cryptocurrencies, which he likened to the “wild west” of Wall Street because of its lack of investor protections. Many investors, like those who poured into SquidGame coin only to lose their money, have been scammed in the crypto market.