[2018-07-25] SEC Delays Ruling on Five Bitcoin ETF Applications

[ivanpoldark]

The Securities and Exchange Commission (SEC) 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.

The ETFs in question are Direxion Daily Bitcoin Bear 1X Shares, Direxion Daily Bitcoin 1.25X Bull Shares, Direxion Daily Bitcoin 1.5X Bull Shares, Direxion Daily Bitcoin 2X Bull Shares, and Direxion Daily Bitcoin 2X Bear Shares.

SEC Puts the Brakes on Direxion’s Bitcoin ETF Aspirations

According to the SEC press release, on Jan. 4, 2018, NYSE Arca, Inc. submitted a filing for a proposed rule change which would permit the listing and trading of shares of the ETFs under the NYSE Arca Rule 8.200-E.

In response to this, the SEC indicated that it would need more time to study and analyze the proposed changes to make sure that they are in line with its standards.

Signed by Assistant Secretary Eduardo A. Aleman on behalf of the SEC Division of Trading and Markets, the statement specifically mentions that the SEC had concerns about whether the changes would be in line with Section 6(b)(5) of the SEC Act.

This section states, amongst other things, that the rules of a national securities exchange must be designed to “prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and to protect investors and the public interest.”

Read more: https://www.ccn.com/sec-delays-ruling-on-five-bitcoin-etf-applications/

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[Kakmakr]

The Securities and Exchange Commission (SEC) 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.

The ETFs in question are Direxion Daily Bitcoin Bear 1X Shares, Direxion Daily Bitcoin 1.25X Bull Shares, Direxion Daily Bitcoin 1.5X Bull Shares, Direxion Daily Bitcoin 2X Bull Shares, and Direxion Daily Bitcoin 2X Bear Shares.

SEC Puts the Brakes on Direxion’s Bitcoin ETF Aspirations

According to the SEC press release, on Jan. 4, 2018, NYSE Arca, Inc. submitted a filing for a proposed rule change which would permit the listing and trading of shares of the ETFs under the NYSE Arca Rule 8.200-E.

In response to this, the SEC indicated that it would need more time to study and analyze the proposed changes to make sure that they are in line with its standards.

Signed by Assistant Secretary Eduardo A. Aleman on behalf of the SEC Division of Trading and Markets, the statement specifically mentions that the SEC had concerns about whether the changes would be in line with Section 6(b)(5) of the SEC Act.

This section states, amongst other things, that the rules of a national securities exchange must be designed to “prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and to protect investors and the public interest.”

Read more: https://www.ccn.com/sec-delays-ruling-on-five-bitcoin-etf-applications/

So, is this just for those applications and not for the others that applied? Will we still get some kind of ruling in August? The whole world is looking at the SEC to make a ruling on ETFs in general, so I hope we would see some announcement in August.

The price even increased in anticipation of a possible favourable ruling in this regard. Now they want to make separate rulings on every application. 

[Rahar02]

The market reacts to this Bitcoin ETF approval rumor for sure, take a leap over $2000 and now ETF decision postponed again give a longer period for the price to increase slowly or decline again .  Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,\10\ designates September 21, 2018, as the date by which the Commission shall either approve or disapprove the proposed rule change.”
Well, the SEC have 240 days since files submitted to federal register to approve or deny an ETF.

how many files for bitcoin ETF submitted to SEC?

• on Jan. 4, 2018, NYSE Arca, Inc. submitted a filing for a proposed rule change which would permit the listing and trading of shares of the ETFs under the NYSE Arca Rule 8.200-E.
• Cboe, the world’s largest futures exchange, has filed for a bitcoin ETF with the US Securities and Exchange Commission (SEC), to enable investors in the public market to trade bitcoin. On June 26th, The SEC received an application for a Bitcoin ETF (exchange traded fund) filed by the Cboe Global Markets, who have proposed to partner with Van Eyck Investment and SolidX.

"Notably, none of the ETF proposals being postponed are from VanEck and SolidX[.]"
But this isn't notable at all. The deadline to approve or deny the Direxion ETF was July 23. As explained, the SEC waits until the deadline before issuing another extension.
the standard timing for the VanEck/SolidX ETF would be:

- Notice was originally posted on June 26;
- First extension expected ~August 10 (45 days later);
- Second extension expected ~September 24 (45 days later); and
- Third extension expected ~December 23 (90 days later).
https://twitter.com/jchervinsky/status/1021795232734765056

[Lucius]

So we can expect that SEC make final decision on August 10 or that the decision of ETF be extended until December 23. It will be interesting to see what will happen, but somehow it seems to me that it might be a delay to the last possible date. I think that in this wave of ETF expectation the price could easily reach last year levels or even more. The worst scenario would be rejection on August 10, but I hope that will not happen - we certainly need some excitement and optimism.

[audaciousbeing]

The Securities and Exchange Commission (SEC) 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.

The ETFs in question are Direxion Daily Bitcoin Bear 1X Shares, Direxion Daily Bitcoin 1.25X Bull Shares, Direxion Daily Bitcoin 1.5X Bull Shares, Direxion Daily Bitcoin 2X Bull Shares, and Direxion Daily Bitcoin 2X Bear Shares.

SEC Puts the Brakes on Direxion’s Bitcoin ETF Aspirations

According to the SEC press release, on Jan. 4, 2018, NYSE Arca, Inc. submitted a filing for a proposed rule change which would permit the listing and trading of shares of the ETFs under the NYSE Arca Rule 8.200-E.

In response to this, the SEC indicated that it would need more time to study and analyze the proposed changes to make sure that they are in line with its standards.

Signed by Assistant Secretary Eduardo A. Aleman on behalf of the SEC Division of Trading and Markets, the statement specifically mentions that the SEC had concerns about whether the changes would be in line with Section 6(b)(5) of the SEC Act.

This section states, amongst other things, that the rules of a national securities exchange must be designed to “prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and to protect investors and the public interest.”

Read more: https://www.ccn.com/sec-delays-ruling-on-five-bitcoin-etf-applications/

Even with this news, posted for several hours which I am sure would have been released several hours ago, I am still surprised about the response of threads relating to August 16 is still getting hoping for ETF to happen without knowing that it has been suspended indefinitely. While the decision to do a study of the market in other to come out with an informed decision, not putting a timeline to it, makes it something that might not happen anytime soon and that is bad for the market. I think this is what the market has responded to that we have retreat of price that has witnessed some increase in the past few days while some uniformed individuals will start blaming "whales".

Eventually, I think they are only able to shift it forward and cannot continue to ignore the need that a decision will need to made and that is when we will have the last laugh. This is a set back, but not a pull down.

[BitHodler]

It will be interesting to see what will happen, but somehow it seems to me that it might be a delay to the last possible date.

I think that's the best possible scenario if we want to see a longer term bull run take place. Currently we have the first of January to mind, which is an important day due to the value snapshot for taxation purposes.

The worst scenario would be rejection on August 10, but I hope that will not happen - we certainly need some excitement and optimism.

Even if they reject it this year, they can't keep rejecting it endlessly. We'll get that ETF one way or another. If the market goes through a correction due to disappointment, see it as another great buying opportunity.

This is the only serious ETF that people actually have confidence in, where the other ones that have been delayed by the SEC stand no chance at all. Some of them even include altcoins, which is an absolute disgrace.

[hotforblockchain]

As far as I understand, there is more than one ETF proposal.
But I was not aware that it was possible for them to postpone the decisions again and again, this could mean trouble for the whole market, since it is waiting for the ETF.

I believe that the first approved ETF will have huge minimum contract amount.

[Slow death]

so basically we will have to wait for the decision and this seems to repeat the scenario of last year, where after July people had many expectations, it was about 2x segwit fights, it was about BCH, it was expectations about the futures launch, it was expectations of more countries to follow Japan, it all just showed that we need great news to motivate people to buy bitcoins and altcoins... and it seems the salvation would be if some ETF were approved and this would generate a great demand for cryptos , with this perhaps this market would cease to be highly speculative