Several bids to launch a bitcoin ETF has been withdrawn due to concerns SEC

Several bids to launch a bitcoin ETF has been withdrawn due to concerns SEC

On 9 January the company ProShares, Raffety Assets Management and VanEck withdrew the application to launch a bitcoin ETF, referring to the requirement of the regulatory body SEC.

Rafferty Assets Management commented that the Commission on securities and the markets of the USA (SEC) “expresses concerns about liquidity and valuation” bitcoin futures.

None of the withdrawn proposals are not actually a bitcoin ETF. In fact the creation of a bitcoin ETF is seen as the Holy Grail of the ruling financial recognition, because for this you will need to purchase a real cryptocurrency for the return on investment in ETFs.

Withdrawn applications have been associated with the markets for futures contracts on bitcoin. The proposed ETF launch was supported by kriptosmartfon because this event could be the first step to the emergence of an bitcoin ETF.

Optimism diminished

Fund managers believed that the applications have a chance of approval, given that in December I start trading bitcoin futures on two U.S. exchanges. However, it is worth remembering that earlier, the SEC has rejected a proposal by the Winklevoss brothers for the creation of ETFs without excluding the possibility of approval of the exchange traded Fund for bitcoin if the markets regulated futures. The reluctance of the SEC to consider the ETF based on the futures market was certainly a cause for concern.

However, it is wise to remember that the regulators make decisions slowly and gradually. Chris Concannon, CEO of Cboe, in an interview with Business Insider last month said:

“A healthy market is a market of derivatives and ETFs. It will take time.”

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