This article was originally published on ETFTrends.com.
The Securities and Exchange Commission (SEC) set Friday, Oct. 26, 2018 as the deadline for public comments on nine applications from various issuers looking to launch bitcoin exchange traded funds.
Earlier this year, the SEC rejected the applications, preventing the digital currency from gaining more acceptance from investors who are wary of the unregulated exchanges of cryptocurrencies. The SEC’s Division of Trading and Markets rejected applications from investment firms ProShares, Direxion and GraniteShares.
“The new amendments affect a pair of BTC ETFs that had been submitted by ProShares in conjunction with the New York Stock Exchange (NYSE) ETF exchange NYSE Arca. The other affected applications are the five further proposed ETFs from Direxion, also for listing on NYSE Arca – and two proposals from GraniteShares, for listing on CBOE,” reports Cointelegraph.
With just three months left in 2018, market observers are pointing to 2019 as the earliest a bitcoin ETF will come to life in the U.S. Some insist it will take a physically backed fund to garner approval from regulators.
Rejections Still In Effect
Although the SEC has opened a new window for public comment on the various bitcoin ETF efforts, the commission’s orders rejecting rules changes for the proposed funds remains in effect.
“The regulator has outlined that its prior orders disapproving proposed rule changes for all three applicants’ proposals will remain in effect pending the Commission’s review,” according to Cointelegraph.
In previously turning back the bitcoin ETF applications, the SEC stated, “Among other things, the Exchange has offered no record evidence to demonstrate that bitcoin futures markets are ‘markets of significant size.’ That failure is critical because, as explained below, the Exchange has failed to establish that other means to prevent fraudulent and manipulative acts and practices will be sufficient, and therefore surveillance-sharing with a regulated market of significant size related to bitcoin is necessary.”
“The regulator had found that the products did not comply with the requirements by the ‘Exchange Act Section 6(b)(5), in particular the requirement that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices,’” notes Cointelegraph.
For more information on the cryptocurrency market, visit the Bitcoin category.