The clock just started on the latest effort to launch a bitcoin exchange-traded fund (ETF).
The U.S. Securities and Exchange Commission (SEC) announced it was beginning its review of a bitcoin ETF rule change proposal filed by NYSE Arca and Bitwise Asset Management on Feb. 11, and the proposal itself was published in the Federal Register on Feb. 15, meaning the regulator has 45 days to make its initial decision on whether to approve, reject or extend the proposal.
The SEC has at most 240 days to make a final decision on whether to approve or reject the ETF. Members of the general public looking to file responses to the rule change proposal have three weeks to submit any comments. Many proponents of bitcoin ETFs believe the funds will bring new investors and increased liquidity to the market.
NYSE Arca and Bitwise announced their attention to launch a bitcoin ETF earlier this year, filing the rule change proposal the same day. However, due to the government shutdown, the SEC did not publish the filing in the Federal Register, meaning the agency was not examining the proposal.