Could a Bitcoin ETF get auto-approved during the government shutdown?

07 Jan, 2019 | Updated: 07 Jan, 2019
by Will Heasman
Could a Bitcoin ETF get auto-approved during the government shutdown?

After a lull in the discussion surrounding a Bitcoin (BTC) ETF following multiple delays upon the decision from the SEC, talks of a potential cryptocurrency ETF are once again circulating; and with the SECs self-imposed February deadline fast approaching, the rumor mill is spinning out of control.

Among these rumors is one fairly quizzical report that a blockchain ETF could “automatically get approved” thanks to the government shutdown:

According to the linked article, the SEC didn’t formally approve two ETFs - which invest exclusively in blockchain startups – but under current law, the two ETFs were automatically approved.

The prolonged US government shutdown directly impacts the regulatory body who have announced that they will operate under limited functions:

Furthermore, speculators state that if the shutdown lasts until the BTC ETF deadline (February 27th) than the proposed rule change will be auto-approved.  

However, throughout the duration of this shutdown, the regulatory body will still respond to “emergency situations involving market integrity and investor protection, including law enforcement.”, making it unlikely that a proposed Bitcoin ETF will ‘slip the net’.

This view was echoed by Jake Chervinsky, a prominent crypto commentator and securities lawyer who put the rumors to bed, simply by Tweeting:

Chervinsky linked to a previous Tweet of his asserting that while the SEC has a reduced staff it will still have enough hands on deck to reject the BTC ETF in order to avoid an auto approval.

Meanwhile, more and more of the crypto community are going cold against the idea of a BTC ETF. A recent conversation between Naomi Brockwell and former Wall street advisor Tyrone Ross Jr echoed this growing sentiment with Ross Jr asserting that an ETF is counter-intuitive to the fundamental ideals of cryptocurrency and just another way for wall street to cash in on crypto.

Read more: Wall Street financial advisor: "We don't need an ETF"Why hasn't the SEC approved a Bitcoin ETF yet?

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