The SEC needs to determine the next request to open a bitcoin ETF until 23 August


The SEC needs to determine the next request to open a bitcoin ETF until 23 August

Thursday — last day a decision on the application for opening a bitcoin ETF Proshares for the Commission on securities and exchange Commission (SEC). The event is not discussed in kryptomere, but given how shaken the market only from the news that the SEC decided to reject the application of the Winklevoss brothers, or extend the time for hearing to launch a bitcoin ETF on the CBOE, it is better to be ready for it.

The decision is in some way a milestone — it will be the first final decision of the SEC on cryptocurrency ETF adopted in 2018 to meet the changed market realities, and attitudes of regulator. Canceling brothers the Winklevoss formally is not because the SEC then simply confirmed its decision taken in 2017, and the application was filed at all in 2016.

An application to open a Bitcoin ETF and ProShares ProShares Short Bitcoin ETF were filed by NYSE Arca in December 2017. According to the application, both exchange traded Fund involve the use of derivatives (futures, options and swaps) tied to the bitcoins.

American lawyer Jake Czerwinski notes that the extension in this case, the question the regulator’s decision will be final, probable delays already used.

He also notes that the position of the SEC in respect of the cryptocurrency markets in the case of a request by the Winklevoss brothers was formulated in the following way: markets are not sufficiently protected against manipulation, in particular because of the lack of proper regulation, they have enough liquidity to maintain the integrity and effectiveness of the arbitrage between ETFs and spot prices. However, in this case, the decision on the merits was made in 2017, but this summer the SEC just left it in force.

However, commentators tend to think that a breakthrough in the case of Proshares should not be expected. “The market prefers not to talk about that application, and the reason is, — said cryptotriton and a former banker, Axel Krueger. — Most of the critical remarks of this application can equally well be addressed and THEIR application”.

However, it also has a number of inherent weaknesses, such as the absence of the barrier, which cuts off the majority of private investors (THEIR application provides for a lower threshold of participation at the level of 25 bitcoins).

“In short, the chances of approval Proshares is close to zero. However, better keep in mind that date — while a decision may be taken earlier — since the market is quite likely to negatively react to the news of her rejection,” he concludes.


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