The SEC is Considering Two Applications for the Creation of Bitcoin ETFs

The SEC is Considering Two Applications for the Creation of Bitcoin ETFs

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The US Securities and exchange commission (SEC) moved without superfluous publicity towards the reconsideration of two applications for bitcoin exchange funds (ETF). Based on documents dated March, 23 and published the day before, the department  has begun the process of reviewing a rule that allows bitcoin ETFs to be listed on the NYSE Arca exchange.

Details of the documents discuss the department’s intend to raise the issue about revising current rules to allow or deny the listing of the New York exchange traded funds for ProShares Bitcoin ETF and ProShares Short Bitcoin ETF.

“Consideration is considered expedient in connection with the legal and political questions caused by the offered change of rules. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved.”

It is important to note that ProShares offered these two ETF as early as September the last year, earlier than the CBOE and CME.

Also before the SEC called to recall all requests on the creation of Bitcoin ETFs, it was mentioned in a prior published statement published that regulators do not intend to approve similar products until additional measures are undertaken to protect investors.

Last month the president of the CBOE, Chris Concannon, wrote a letter requesting that the SEC consider applications for the Bitcoin ETFs on an individual basis and not the class of the product. He also mentioned that the CBOE successfully executed a few rounds of expansion of bitcoin futures without incident and that the bitcoin markets quickly ripened and soon can guarantee a managed ETF.

According to recommendations of  the SEC, the considered rule change will be published in the Federal register, whereupon the public will have 21 days for comments and 14 days, to present refutations to other comments.

Comments can be sent by email or on the web site of the SEC, and commentators must mention the file number of SR NYSEArca 2017-139 on the topic form.

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