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SEC Postpones Decision to List Bitcoin ETF until September 30 – Market is Unregulated

August 07

Bitcoin ETF Postponed until September

The Securities and Exchange Commission likes to take their time before making an important decision. The idea to list and trade Bitcoin of Exchange-Traded Fund (ETF) has been postponed until September 30. This is clearly stated in the official document published by SEC on August 7.

You can read the full document here.

In short, ETFs are securities that track assets which are represented in the shares of funds. Some believe that ETF could be a huge leap towards the wide-scale adoption of cryptocurrencies.

Why?

Because then cryptocurrencies would be regulated and considered as a tool for passive investment.

"Accordingly, the Commission ... designates September 30, 2018, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change."

Two investment firms have proposed Bitcoin listing on the Chicago Board of Exchange (CBOE) in June. This, of course, sparked numerous discussions whether it was a right thing to do. The SEC has almost two additional months to meditate on the idea and consider the rule change by the CBOE Global Markets.

According to Cointelegraph, the SEC has received over 1,300 comments regarding the listing of SolidX Bitcoin shares that are issued by the VanEck SolidX Bitcoin Trust. The document states that the SEC has a timeframe of 45 to 90 days to decide on the listing. They can approve, disapprove or further prolong the decision.

“Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,6 designates September 30, 2018, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change (File No. SRCboeBZX-2018-040).”

VanEck and SolidX proposed the physically backed Bitcoin ETF on June 6. The SEC claims that each share of VanEck SolidX Bitcoin Trust is priced at $200,000. Daniel H. Gallacy, the CEO of SolidX, said that they are interested in attracting institutional investors rather than retail ones.

Moreover, another Bitcoin ETF listing from Direxion was delayed until September 21. The proposal by Bats BZX Exchange to list Winklevoss Bitcoin Trust filed in 2016 was rejected.

The SEC explains why they are postponing the decision to list Bitcoin ETF and the main reason is that Bitcoin is unregulated.

“When the spot market is unregulated — there must be significant, regulated derivatives markets related to the underlying asset with which the Exchange can enter into a surveillance-sharing agreement.”

The Bitcoin price at the moment of writing is hovering at $6,647, Ethereum at $379. It is likely that the prices have tumbled down due to SEC announcing postponing the decision on Bitcoin ETFs.

In other news, banks are taking presumably positive actions towards Bitcoin adoption. A Swiss bank says they will accept cryptocurrency and a German stock exchange releases a cryptocurrency trading app.

Sources: Cointelegraph, Coindesk

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