Bitcoin ETF Delayed
According to the public document released by The US Securities and Exchange Commission (SEC), it will delay its decision to approve five Bitcoin ETFs until September.
Direxion Asset Management plans to provide five Bitcoin-associated ETFs, some of which are expected to offer a doubling of the results of the Bitcoin futures transaction. Details were included in the notification of NYSE to the Securities and Exchange Commission (SEC) on 4 January 2018.
According to the release, Direxion wants to run the following EFTs:
- Direxion Daily Bitcoin Bear 1X Shares,
- Direxion Daily Bitcoin 1.25X Bull Shares,
- Direxion Daily Bitcoin 1.5 Bull Shares,
- Direxion Daily Bitcoin 2X Bull Shares,
- Direxion Daily Bitcoin 2X Bear Shares.
The SEC usually makes its decisions within 45 days after the application is filed, but according to an official document published on Tuesday, 24 July 2018 by the U.S. Government Publications Office, the agency will continue to consider your application and announce its ruling on September 21.
“That would be insane for them actually to approve this. Then they are putting a rubber stamp on it as an asset, and I don’t think governments want to go there yet,” said Michael Cohn, chief investment strategist at Atlantis Asset Management to CNBC.
The SEC repeatedly rejected previous applications related to the establishment of ETFs in Bitcoin. The application, submitted by Tyler and Cameron Winklevoss at the beginning of this year, was denied by the regulator due to the highly unstable and unregulated character of the cryptocurrencies. The SEC questioned the ability of these ETFs to conclude the necessary risk-sharing agreements and the lack of protection against fraud and manipulation in commercial practices.
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