The Securities and Exchange Commission (SEC) postponed a decision on a bitcoin exchange-traded fund (ETF) proposal from NYDIG, which would be based on the price of bitcoin held in trust, on Tuesday.

The SEC stated that it will make a decision on whether to allow the bitcoin ETF from NYDIG, a subsidiary of Stone Ridge, which was recently valued at more than $7 billion, to trade on Intercontinental Exchange Inc's (ICE.N) NYSE Arca by March 16, rather than the earlier deadline of Jan. 15.

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In mid-December, NYDIG announced a $1 billion funding round led by venture firm WestCap, with participation from existing investor Bessemer Venture Partners, valuing the bitcoin company at more than $7 billion.

The subsidiary of Stone Ridge operates a full-stack bitcoin platform that distributes the cryptocurrency across industries such as financial technology, insurance, and banking.

A surge in the value of digital currencies, combined with increased backing from major corporations, has allowed companies in the sector to command exorbitant valuations in recent months, despite increased regulatory scrutiny.

Affirm Holdings, FIS, Fiserv, MassMutual, Morgan Stanley, and New York Life were among the existing investors who participated in the latest round.

It also has alliances with technology companies such as Alkami, Fiserv, Jack Henry & Associates, and Q2 Software.

NYDIG intends to use the funds raised in the round to expand its bitcoin platform, expand existing payment capabilities, and implement asset tokenization.