The Securities and Exchange Commission of the United States (SEC) must decide on one of the applications for the launch of the exchange-traded fund (ETF) tied to bitcoin, this Thursday, CoinDesk reports.
Representatives of the US regulator will consider applications under the headings of ProShares Bitcoin ETF and ProShares Short Bitcoin ETF on August 23 or earlier. Unlike the earlier decision to postpone the processing of applications by VanEck and SolidX companies wishing to issue their instrument to the CBOE exchange, this time the SEC can not take additional time for reflection in accordance with its own rules.
The proposal ProShares, sent to the SEC in December last year, provides for the creation of an instrument based on futures contracts for bitcoin, and not the reserves of the cryptocurrency itself. In other words, the value of ETF will be determined by the futures exchange rate traded on the CME and CBOE exchanges.
Its first bid for bitcoin-ETF ProShares was issued in September 2017, but the company itself noted that the bitcoin futures market had not yet formed, and it was not able to provide “guarantees that active trading in the bitcoin futures market could develop or will be supported.”
In January, ProShares Trust asked the SEC to revoke the policy amendment filed on Dec. 19, which, if approved, would allow it to launch ProShares Bitcoin ETF and ProShares Short Bitcoin ETF, as well as ProShares Bitcoin Futures/Equity Strategy ETF and the ProShares Bitcoin/Blockchain Strategy ETF.
The decision to withdraw was taken after the SEC opposed several bitcoins-ETF, citing concerns about the volatility of bitcoin. At the same time, their applications were withdrawn by Direxion Shares, VanEck and First Trust Advisors, but later the SEC said that it would consider proposals to create bitcoin-ETF, which will be based on futures contracts.
Until now, the regulator has only rejected applications for bitcoin-ETF or postponed the terms of their consideration. The last refusal was issued to the founders of the Gemini Exchange by the Winklewoss brothers. Their proposal was rejected by the Commission in the spring of 2017, however, the Bats BZX exchange, through which the application was filed, applied for a review of the decision.