U.S. Government Shutdown Leading to Possible Automatic ETF Approval

Trumps Shutdown of the United States Government has, amongst all the chaos, provided Bitcoin (BTC) an opportunity to gain ETF approval by the U.S. Securities Exchange Commission (SEC). According to Bitcoin.com, the U.S. SEC is due to make a decision on the Vaneck Solidx Bitcoin (BTC) ETF next month, and, the deadline cannot be further extended. However, since the U.S. government is already, currently shut down, there is a possibility of an automatic approval on the ETF. A securities lawyer explains;

The SEC doesn’t have the power to extend the 240-day deadline. The statute absolutely prohibits any further delays … By law, that means if the SEC fails to make a decision by the February 27 deadline, the ETF will be automatically approved.

Securities Lawyer

However, the same lawyer, also explained that is only a small possibility, as the U.S. Government is not totally shut down. The same lawyer also made a statement on Bakkts pending approval by the Commodity Futures Trading Commission (CFTC);

Unlike the SEC, the CFTC has no statutory deadline for making a decision on Bakkt……So it can delay as long as it wants.

Securities Lawyer

Exchange Traded Funds (ETFs) is a financial derivative that allows smaller investors, with less capital, to participate in a market. It is an instrument that pegged to the underling instrument (in this case Bitcoin (BTC)) and provides additional liquidity through increased volume. ETFs also allows for speculation or can be utilised in a hedging strategy.

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