US securities regulator delays decision on 5 ETFs

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The ETF situation with BTC has become a little more confused on Tuesday afternoon after it was revealed that the U.S. Securities and Exchange Commission has delayed its decision on whether to approve five BTC-related exchange traded funds (ETFs) until September. This was revealed in public documents that were filed on Tuesday.

In the latest edition of the Federal Register, the SEC explained that it’s postponing any decision over the possible approval of ETF proposals filed by Direxion Investments in January—one of which will match BTC’s price, while the four others are based on the cryptocurrency’s price movements.

In its statement, the SEC said that: On January 4, 2018, NYSE Arca, Inc. filed with the Securities and Exchange Commission to list and trade shares of the following exchange-traded products under NYSE Arca Rule: Direxion Daily Bitcoin Bear 1X Shares, Direxion Daily Bitcoin 1.25X Bull Shares, Direxion Daily Bitcoin 1.5X Bull Shares, Direxion Daily Bitcoin 2X Bull Shares, and Direxion Daily Bitcoin 2X Bear Shares.

The proposed rule change was published for comment in the Federal Register on January 24, 2018. On March 1, 2018, pursuant to Section 19(b)(2) of the Act, the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.

On April 23, 2018, the Commission instituted proceedings under Section 19(b)(2)(B) of the Act, to determine whether to approve or disapprove the proposed rule change. The Commission has received two comments on the proposed rule change.

The SEC further stated: “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.”

While the crypto community largely seems excited at the prospect of a BTC ETF, Atlantis Asset Management chief investment strategist Michael Cohn said any approval would be “insane,” according to 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,” Cohn told the news outlet.

It is worth noting that none of the ETF proposals being postponed are from VanEck and SolidX, which are currently under discussion by the wider crypto community. More than 100 comments have been submitted for that proposal, and a decision may occur as soon as next month with many giving August 10 as a possible deadline.