Direxion’s Bitcoin ETF Approval Decision Postponed by SEC Until Sept 21, 2018
Decision Postponed by the SEC TO Decide on the Fate of Five ETFs
In the most recent publication of the Federal Register, it seems that the U.S. Securities and Exchange Commission (SEC) needs a little more time on a decision regarding five bitcoin-related ETFs. An ETF is an exchange-traded fund, and the public documents that the SEC issued indicate that they will not be finalizing anything until September.
The SEC has explained that the ETFs that are presently pending come from Direxion Investments, who filed for approval back in January. This particular proposal includes one EFT that will coincide with the price of Bitcoin, while the other four regard the movement of price that Bitcoin has experienced.
The SEC said:
“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. Accordingly, the Commission, … designates September 21, 2018, as the date by which the Commission shall either approve or disapprove the proposed rule change.”
They also noted that they received two comments about the proposals, though there were any additional details.
The cryptocurrency world has been fairly excited about the idea of a Bitcoin ETF. However, one individual does not seem to be as elated – Michael Cohn, the chief investment strategist for Atlantis Asset Management. He called the approval “insane,” and told CNBC:
“Then they're putting a rubber stamp on it as an asset, and I don't think governments want to go there yet. It just seems as though it's not something I'd want to put my clients into in any way, shape or form. You can only be embarrassed.”
Consumers should take note that none of the postponed proposals come from VanEck and SolidX, though the rest of the crypto world has been talking. Those proposals have received an additional 100 comments, and it looks like they should either be approved or denied in the next month.