Source: iStock / ncouslaIt seems that Bitcoin traders are getting tired of the same old story of proposals for exchange-traded bitcoin funds that are presented, then rejected or withdrawn.
This week again, this has been replicated, while a recently announced ETF proposal has been removed from the US Securities and Exchange Commission's (SEC) review. However, the market has barely taken note. In addition, the bitcoin rose slightly after the announcement of the news, but it is still down 0.65% over the last 24 hours Thursday morning (UTC 6:53.) Meanwhile, Monday, after the announcement of the ETF news, the market had remained virtually motionless before. down on Tuesday morning.
As stated, an American company named Reality Shares ETF submitted a proposal with the SEC for the listing of its "ETF Blockforce Global Currency Equity Strategy" on NYSE Arca, a US-based stock exchange for ETF listing and trading.
The ETF would be different from other ETF proposals by investing not only in standard bitcoin futures, but also in other, more conservative and traditional types of investments, such as bonds and money market funds. According to the issuer, this would reduce the risk of the fund and thus increase the chances of obtaining SEC approval.
The problem, however, is that the company behind the proposal on Tuesday had already withdrawn its bid. According to one Note sent to the SEC on Tuesday, February 12, the company withdrew its proposal "at the request of staff of the US Securities and Exchange Commission".
It was withdrawn because the SEC still considers it inappropriate to deposit a registered 40 Act fund with exposure to cryptocurrency, said a Reality Shares representative attorney in Coindesk.
The problem of the proposal relates specifically to the use of "Law 40", as this would have meant that the proposal would be automatically approved within 75 days, in accordance with the SEC rules in force. This is what the SEC staff members questioned and which led the company to withdraw its proposal, said the lawyer, who was not yet.
"This confirms my view that regulators are not yet comfortable with a Bitcoin ETF and that we should not expect one in 2019. This year is about institutional adoption," he said. improving custody standards, building infrastructure and, in doing so, the way to mass retail adoption, "commented Tuur Demeester, popular economist and investor in Bitcoins, on Twitter.
Yes. It is certainly better to have one that builds one for one with real BTC. @gaborgurbacs all about you!
– Mati Greenspan (@MatiGreenspan) February 13, 2019
Meanwhile, Securities and Exchange Commissioner Hester Peirce downplayed expectations for commission voting on a Bitcoin-traded product or fund in 2019, Washington Examiner reported.
"[W]We have applications. … These are subject to a very specific time frame where we have to act within a certain time frame, and that's what we depend on. And these are very obscure rules as to whether this happens or not, so I can not speculate on the timing, "she said.
However, at the same time, other ETFs are helping to raise the profile of the cryptography industry, such as the Amplify Transformational Data Sharing ETF. According to Bloomberg, it follows companies that develop, use, create partnerships or invest in blockchain and cryptocurrency technologies.