Commission United States securities and exchange Commission (SEC) has postponed a decision on bitcoin ETF until September 30.
Exchange Traded Fund or ETF is a exchange traded Fund or exchange-traded Fund and index Fund shares (shares) which are traded on the stock exchange. The ETF structure follows the structure of the chosen benchmark index. Unlike index mutual funds, ETF shares can produce all of the same operations available for common stock in the stock trading. This is the main advantage of the ETF to the mutual Fund activity in the ETF shares can be made throughout the trading day and the price varies depending on the activity of market participants. In fact ETF is a new type of securities which serve as certificates for share portfolio, bonds, commodities.
Many believe that the emergence of the ETF will be the next step in the mass adoption of cryptocurrency and bitcoin in particular.
The application for the ETF in question was sent to the investment firm VanEck and financial services company SolidX. This ETF was traded on the Chicago Board of exchange (CBOE). Therefore, the SEC now has nearly two months to consider applications.
The Commission, in accordance with section 19 (b) (2) of the Act, 6 designates September 30, 2018 as the date when the Commission will either approve, or reject, or take certain measures to determine whether to disapprove the proposed rule change (Case number SRCboeBZX-2018-040). “
VanEck and SolidX first announced physically support the bitcoin ETF on June 6. According to the application to the SEC, the price of each share VanEck SolidX Bitcoin Trust established in the amount of 200,000 USD. SolidX CEO Daniel H. Gallancy said in an interview for CNBC that the high price reflects the Fund’s intention to focus on institutional, not retail investors.
Last month the SEC has deferred a decision on the application of the investment firm Direxion on a bitcoin ETF until September 21. The regulator also dismissed the appeal on Bats BZX Exchange, Inc. (BZX) to bitcoin ETF from the Winklevoss Bitcoin Trust, originally filed in 2016.
The Agency referred to the unregulated nature of the markets as the main reason for rejection of the application.