SEC delays decision on Direxion Investments Bitcoin ETF

The American regulator SEC, once again, took a wait-and-see approach and postponed the date of consideration of the application for approval of Bitcoin-ETF submitted by Direxion Investments at the beginning of the year.

The regulator's decision regarding five Bitcoin ETFs has been postponed. Four of the announced products are based on cryptocurrency price fluctuations and one is related to the price of Bitcoin. The SEC explains that only two expert opinions have been received regarding the products offered by Direxion Investments. The commission needs more time to consider the proposed Bitcoin-ETFs and the deadline for making a decision on them is shifted to September 21.

This position was announced only in relation to the application of Direxion Investments. The SEC has not yet made any official comments on previously filed applications.  

So investment management firm VanEck lobbied the SEC in a new attempt to get the regulator interested in authorizing ETFs. In a July 20 letter, VanEck, which earlier this month announced its intention to partner with other SolidX operators to launch the fund, reiterated its belief that the industry is ready to launch a new vehicle.

Earlier in 2017, the SEC rejected the company's ETF option, telling VanEck that there were a number of questions and concerns surrounding cryptocurrency investment funds. VanEck believes it has answered all of the SEC's questions and received more than 100 comments. 

At the end of June, the Chicago Board Options Exchange CBOE Global Markets announced its intention to open an ETF for trading SolidX shares. Consideration of the application is expected on August 10.

Bitwise Asset Management also submitted its application last week. The company is planning an ETF for the ten most liquid cryptocurrencies included in the HOLD 10 index.

A conversation with US regulators softening their stance on ETFs has led many commentators to suggest that Bitcoin prices are already reacting to the news.

Offering investors the opportunity to use Bitcoin through regulated investment product, fund operators keep the crypto market orderly and efficient and simplify the process of capital accumulation. The full launch of exchange-traded funds will reduce the potential manipulation and operational risks associated with the Bitcoin investment product.. The emergence of such exchange instruments will attract institutional investors to the digital market, which, in turn, is guaranteed will be reflected in the price of Bitcoin.