The SEC Punts (for now)

Follow-up on Bitcoin ETF

A column in May urged the SEC not to approve a proposal for a VanEck Bitcoin ETF. To do so, your correspondent said, would give government encouragement (and, for 401(k) investors, a federal tax shelter) to “the most flagrantly obvious speculative bubble in modern times.”

The SEC has pushed back its decision, citing the need for more analysis due to “legal and policy issues” raised by the proposed fund.

As part of its inquiry, the regulator is seeking public comment. Specifically, it wants the public’s take on whether the crypto fund would be “susceptible to manipulation,” on the “liquidity and transparency of the bitcoin markets,” and, perhaps most importantly, on “the suitability of bitcoin as an underlying asset for an exchange-traded product.”

The SEC stresses it has not reached any conclusion.

VanEck vows to push ahead for approval. It wants your retirement dollars.