US SEC Puts Approval On Hold For Bitcoin ETF

On Tuesday, through a public document, The U.S. Securities, and Exchange Commission announced a delay on formulating any verdict on the approval of five bitcoin-related exchange-traded funds (ETFs) filed by fund provider Direxion until September 21, 2018.

The publication from the U.S. Securities and Exchange Commission (SEC) mentioned it was “appropriate” to delay its conclusion, which only affects Direxion’s offering.

“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change until September 21, 2018.”

“Accordingly, the Commission shall either approve or disapprove the proposed rule change.”

SEC is using a special extension time frame of 60 days, an appropriate stretch which is important to analyze the proposal before arriving at a conclusive decision.

However, the commission was supposed to come up with the decision within 180 days of the date of publication of the proposed rule change notice which was Jan. 24, and originally it was due on July 23.

Thus, the new due date for its final decision on the ETF rule changes is 240 days instead of 180 days which is from Jan. 24, until Sept. 21.

During last week, another operator, VanEck, discoursed on the SEC’s “concerns” about its potential product and argued on getting unsuccessful last year to get the approval of its fund launch in spite of following the legal standards. VanEck is currently planning for upcoming syndication with Solid X on a new offering since June 2018.