Nearly 10 months into 2018 and one thing is clear regarding bitcoin ETFs: U.S. regulators continue raising issues that prevent these products from coming to market. Despite the lack of approval for bitcoin ETFs in the U.S., some crypto market observers remain hopeful bitcoin ETFs will eventually come to life.
Earlier this month, 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.
Delays for Bitcoin ETF Decision
“However, others think delays on a final decision might push deliberation into 2019. eToro senior market analyst Mati Greenspan says the earliest decision from the SEC about the proposed SolidX Bitcoin Shares would occur on December 29,” reports Bitcoinist.
In June, ETF issuer VanEck and SolidX, a fintech company engaged in the bitcoin ecosystem, revealed plans for the VanEck SolidX Bitcoin Trust ETF (XBTC). That fund is targeted at institutional investors as it would debut with a share price of $200,000. That product would track an index linked to a group of bitcoin trading desks, possibly allaying some of the SEC’s prior concerns about funds linked to physical bitcoin.
Related: Bitcoin ETF Chances Better than Expected after SEC Extension?
The SEC explained that the Securities Exchange Act provides that it can extend the 45 days period from publication if it finds it “appropriate to designate a longer period” so it has sufficient time to consider the proposed rule change.
“Despite lingering questions about the SEC’s perception towards Bitcoin ETFs, some speculate the right personnel inside of the agency will help facilitate approval,” reports Bitcoinist. “Over the last month, a lot of attention has been focused on the Senate’s approval of Elad Roisman to serve as SEC Commissioner. Roisman’s positioning towards the top of the organization means, according to an anonymous analyst, that a Bitcoin ETF is inevitable.”
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