[2017-10-07] SEC Asks For Two New Bitcoin ETF Applications Withdrawal

[gokayc]

In a move that may seem surprising, the SEC has asked for withdrawal of the application for Bitcoin derivative ETFs via a formal letter to the applicants. The move indicates that the SEC is not ready to handle the derivatives ETF at this time.

The letter indicates that the SEC is not prepared to approve ETFs on derivatives of financial instruments that are not yet SEC approved or compliant - that is, Bitcoin. The letter states:

“The Trust notes that on a call with the Staff, the Staff expressed the view that it is the Commission’s policy not to review a registration statement for a fund where the underlying instruments in which the fund intends to primarily invest are not yet available. The Staff requested that the Trust withdraw Amendment No. 47 until such time as the underlying instruments in which the Funds intend to invest (i.e., Bitcoin futures contracts) become available for investment.”
SEC and Bitcoin

The SEC has been on a slowly increasing regulatory trajectory with Bitcoin, as the cryptocurrency has increased in popularity.

The increase in regulation indicates a general perspective of doubt and need for protection of consumers.


https://cointelegraph.com/news/sec-asks-for-two-new-bitcoin-etf-applications-withdrawal

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1713980575

[jrobi4life]

Can't say it's a shock...but it's interesting that they would ask them to withdraw rather than just denying their request. It's likely that means they are in bed with another applicant and don't want any precedent of them quoting a legal reason for denying a request on the books since they will be involved themselves at a later date. If you could just sign Riiiiggghhhttt heeerre we'll go ahead and put you out of business