SEC Filings Indicative of BTC ETF Decision Sooner Than Expected

Bitcoin, News

The SEC has recently filed some official amendments to the various BTC ETF applications. The amendments appear to indicate that a decision could be coming sooner rather than later. The filings for the ETF applications require all parties to submit the relevant documentation by October 26th.

Granite Shares BTC ETF amendments

There has already been considerable disappointment with the whole process and much hype surrounding a continually deferred decision on BTC ETF applications. But in this instance, the SEC has stated that by October 26th, 2018, all parties interested in filing for a Bitcoin ETF in support or opposition to the Granite Shares Bitcoin ETF and the Granite Shares Short Bitcoin ETF (SR-CboeBZX2018-001) should have all documentation submitted. These ETFs were submitted on January 5th, 2018, by the CBOE exchange, and the SEC has been in the process of reviewing them since. The amendment was filed on October 4th and read –

“Accordingly, IT IS ORDERED, pursuant to Commission Rule of Practice 431, that by October 26, 2018, any party or other person may file a statement in support of, or in opposition to, the action made pursuant to delegated authority.”

Multiple Amendments to various ETF Submissions

While Granite Shares was the first filing, more were to follow. Further updates were made about the multiple other Bitcoin ETF submissions, including the Direxion Daily Bitcoin Shares and the ProShares Bitcoin ETF. Both of these amendments reflect the amendments to the Granite Shares Bitcoin ETFs, with the same wording as the above. For these ETFs, all submissions must be made by the 26th of October 2018. NYSE Arca filed the ProShares and Direxion ETFs. ProShares were among the first BTC ETFs submitted, in December 2017.

A BTC ETF is regarded as very significant for the overall industry. This is because it will provide a means for investment advisors to gain exposure to the new asset class. At present, it is not possible for financial firms to invest in cryptocurrencies, though there is considerable evidence to suggest that institutional investors have been heavily investing via the OTC market. Wall Street investor and financial advisor Ric Edelman recently lent his voice towards the cryptocurrency industry. On CNBC’s fast money on October 4th, the same day that the Bitcoin ETF amendments were filed, he indicated a BTC EFT was a certainty. Additionally, when a bitcoin ETF was passed, it would “change everything.” 

The SEC did not state that it would make a final decision by the 26th of October, as is being reported by some news outlets.  It merely filed documents stating that all parties need to have their information submitted by that date, and in the meantime, the block on these ETFs still stands. How long they take on the matter is ultimately up to the SEC. On a more positive note, as noted by Edelman, is that at some stage we are nearly certain to see a BTC ETF, and it will have positive connotations for the entire cryptocurrency industry when it comes to pass.

Digital Nomad with an interest in Zen and Blockchain technology.

Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.

Leave a Reply