On 24th June, the United States Securities and Exchange Commission [SEC] released a statement stating that the decisions related to Bitcoin ETF are postponed to September.
The report released by the Federal Register states:
“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.”
Based on this, the SEC will either approve or disapprove the rule change related Bitcoin ETF on the 21st September 2018.
Bitcoin exchange-traded fund [EFT] would track the Bitcoin index and replicate the coins daily performance. This would let people with a brokerage account to invest in cryptocurrencies without worrying about all the processes involved in it.
On 4th January, NYSE Arca, Inc. filed a report to the SEC proposing to change the rule to list and trade shares of NYSE Arca Rule and the proposal received two comments. This would include:
- Direxion Daily Bitcoin Bear 1x Shares
- Direxion Daily Bitcoin 1.2x Bull Shares
- Direxion Daily Bitcoin 1.5x Bull Shares
- Direxion Daily Bitcoin 2x Bear Shares
The SEC states that it requires more time to evaluate the approval or disapproval of the proposed rule change because of the high volatility and risks associated with cryptocurrencies.
The report states:
“The Commission instituted proceedings to allow for additional analysis of the proposed rule change’s consistency with section… Act, which requires, among other things, that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,’ and ‘to protect investors and the public interest’.”
Nicholas Merten, a Twitterati says:
“Here’s why a Bitcoin ETF matters: with the release of an ETF, this allows investors to add bitcoin to their retirement portfolio. Global Pensions market: $41.3T. If bitcoin captures just 1% of global pensions, that would create $413,000,000,000 of exposure for cryptocurrencies.”
However, the most awaited Cboe proposal for VanEck and SolidX decision is still going to be held next month. The Cboe trusted will be only focusing on Bitcoin ETF and the proposals have received more than 100 comments.
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