SEC Submits Multiple Amendments Regarding Bitcoin Exchange Traded Fund Proposals, Sets New Date
The United States Securities and Exchange Commission (SEC) just filed amendments to the proposed rule changes related to multiple bitcoin ETF proposals. The amendments were filed late on Thursday afternoon and affect nine separate bitcoin ETFs proposed by three different groups.
The amendment affects two GraniteShares bitcoin ETFs, including the GraniteShares Short Bitcoin ETF and the GraniteShares Bitcoin ETF. It also affects the bitcoin ETFs proposed by Direxion and ProShares. The SEC released three separate amendment statements earlier today, although all three amendments cover similar issues.
Back in August, the SEC announced it was denying all nine bitcoin ETFs proposed by GraniteShares, Direxion, and ProShares.
Then, the SEC reversed that decision a day later, choosing to temporarily halt the denial while under review. It appears some portion of that review process has now been completed, as the SEC has submitted amendments related to each of the three bitcoin ETF groups.
The initial order disapproving the proposed rule change of the GraniteShares, ProShares, and Direxion bitcoin ETFs will remain in effect pending the SEC’s review.
In today’s announcement, the SEC also declared that any comments in support of or opposition to the GraniteShares bitcoin ETFs would need to be submitted to the SEC by October 26, 2018.
The GraniteShares bitcoin ETF proposals have been making their way through the regulatory system since earlier this year. Cboe BZX Exchange submitted the bitcoin ETF proposals on January 5, 2018. The SEC chose to delay the decision on the bitcoin ETF proposals throughout the year before finally denying the GraniteShares ETFs on August 22. On August 23, the SEC decided to temporarily stay its decision while it researched the issue.
With today’s announcement, it means a final decision from the SEC regarding the GraniteShares bitcoin ETFs is expected on October 26, 2018. In other words, we could have the world’s first bitcoin ETF approved by the SEC as soon as October 26.
What Does This Mean for Crypto?
What does this mean for crypto? Well, many took it as good news when the SEC temporarily stayed its decision to deny the bitcoin ETFs back in August. They took it to mean that the SEC was willing to review the ETF proposals to ensure they provided sufficient investor protection.
Optimists will point to today’s amendment decision as further proof that the SEC could approve a bitcoin ETF. Optimists will claim today’s amendments show that the SEC is willing to work with these bitcoin ETF groups.
Pessimists, meanwhile, will claim that the SEC is simply doing its due diligence before rejecting these bitcoin ETF proposals – just like it has rejected every proposal that has come across its desk.
Ultimately, we’ll know more on or before October 26, 2018. That’s the new deadline bitcoin ETF watchers can circle on their calendars. On or before October 26, 2018, the SEC will need to make a decision regarding the bitcoin ETFs proposed by GraniteShares, ProShares, and Direxion.