SEC delays ruling on Bitcoin ETF filed by fund provider Direxion, not CBOE ETFs

25 Jul, 2018
by Joeri Cant
News
SEC delays ruling on Bitcoin ETF filed by fund provider Direxion, not CBOE ETFs

The Securities and Exchange Commission has announced in a statement that it will delay its ruling on whether or not to give approval to a rule change relating to five bitcoin ETF applications filed by fund provider Direxion, untill September 21, 2018.

The SEC stated that it is postponing any decision over the possible approval of ETF proposals filed by Direxion Investments, further explaining that "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."

Michael Cohn, chief investment strategist at Atlantis Asset Management, however, said on CNBC, that it would be insane for them to actually approve this.

"There are a lot of conflicting attitudes about this thing. I don't think the SEC can wrap their arms around this," Cohn said.

The SEC is mandated by law to issue a decision no later than 180 days after it publishes the ETF filing notice, however, there is a provision that allows the SEC to extend that period, which now sets September 21, 2018 as the new date when it would approve or reject the Bitcoin ETF filing.

Important to note is that the SEC's delay does not include VanEck & SolidX, the applications backed by the CBOE, which are scheduled to be decided on in August.

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Read more about: Bitcoin (BTC)

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