The price of Bitcoin has plunged more than 9% in the last 24 hours and is currently at $3,396, according to the latest data on CoinMarketCap.
The plunge follows an announcement from the US Securities and Exchange Commission (SEC) that once again delays its decision on the rule change for a Bitcoin exchange-traded fund (ETF) from New York-based investment management firm VanEck. The new deadline is February 27, 2019.
The decision to delay came sooner than the December 29th deadline – 180 days after VanEck and blockchain startup SolidX first submitted their proposal earlier this year in collaboration with the Chicago Board Options Exchange (Cboe).
An approval by the SEC would have made it the first regulated Bitcoin ETF.
Today’s announcement gives little relief to the crypto community that has speculated for months on how an ETF approval might boost the slumping market by further legitimizing the space and allowing institutional investors to gain exposure to Bitcoin without actually holding the underlying asset.
On September 20, after having received over 1,400 comments on the proposal, the SEC asked for more public comments.
To date the Commission has received over 1,600 comments expressing a range of views on Bitcoin. After further consideration of the proposal, along with the comments, the SEC has opted for more time to deliberate.
According to today’s announcement,
“As of December 6, 2018, the Commission has received more than 1,600 comments on the proposed rule change.
“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change.