09 Oct 2018 Jane Whitmoore
SEC is Waiting for Public Comments on the Nine Bitcoin Proposals
The US Securities and Exchange Commission (SEC) is giving an opportunity to interested parties who want to comment if they are supporting or opposing nine rejected BTC-related exchange-traded funds propositions.
In August 2018, the Commission made a decision to reject nine cryptocurrency applications by ProShares, Direxion Asset Management, and GraniteShares. The products were meant to be traded on the New York Stock Exchange (NYSE) and the Chicago Board of Options Exchange (CBOE).
At the time, SEC announced that the traditional finance market is not suitable for Bitcoin as the crypto cannot handle the massive demand from investors. A day later, the agency reclaimed its conclusion and is currently in the process of reviewing it.
As of now, regulators are preparing the nine ETF proposals. Last week, SEC introduced three amendments as an invitation to anyone interested to submit their statements until October 26. Until the review of the changes is finalized, the refusal will continue to be valid.
In September 2017, ProShares submitted two of the exchange-traded fund proposals, and GraniteShares made two in December 2017. Direxion made the other five applications at the beginning of the this year.
If the proposals are approved, ProShares and Direxion ETFs would be placed on the New York Stock Exchange (NYSE), and GraniteShares would go to the Chicago Board of Options Exchange (CBOE).
Another application the agency is considering was proposed by a crypto startup called SolidX and VanEck –a money management company. There is no news on the matter.
According to observers, the ETF proposals would not be approved, and it is possible that they will need a physically-backed fund to receive consent. Recently, the Trump administration appointed Elad Roisman as an SEC Commissioner, and Mr. Roisman is well-known for his pro-crypto comments.Bitcoin