Bitcoin (BTC) marks a decline upwards of 1 percent in the last 24 hours in anticipation of the decision of the Securities and Exchange Commission on the ProShares-proposed Bitcoin ETF.
“Getting Closer to It”
The SEC needs to decide on the ProShares-filed Bitcoin ETF application on Thursday, according to the Federal Register.
According to Brian Kelly, founder of investment firm BKCM LLC, however, the decision is likely to be negative:
My view is still [that] this does not get approved tomorrow, but I feel we’re making large steps and getting closer to it. […] There’s a better chance this gets approved than anything else.
In late July, the SEC rejected the bitcoin ETF proposal from the founders of the Gemini cryptocurrency exchange – Cameron and Tyler Winklevoss. It’s noteworthy, though, that commissioner Hester M. Peirce formally dissented with the decision, noting:
I am concerned that the Commission’s approach undermines investor protection by precluding greater institutionalization of the bitcoin market.
The CEO of Bitwise Asset Management, Hunter Horsley, outlines that the fact that we are getting closer to a deadline doesn’t change the odds of a potential bitcoin ETF being approved:
An SEC filing hitting a deadline is a procedural reality — it doesn’t change the odds of it getting approved, it just draws our attention to it,” Horsley said. “Just because we hit the deadline doesn’t necessarily give any indication that the SEC has changed its tune.
A sign of positivity, though, can be found within the fact that the Proshares ETF is based on futures trading which are executed on the SEC-regulated CBOE.
Prices Decline
Bitcoin is trading at $6,404 at the time of writing this, marking a decline of slightly more than one percent in the last 24 hours.
Currently, there are several bitcoin ETF proposals coming from different companies which are pending approval. However, the one which has everyone’s attention and purportedly largest chances of getting approved is the commodity-backed VanEck/SolidX bitcoin ETF.
Unfortunately, we are unlikely to see a decision on the latter until early March 2019, according to legal expert Jake Chervinsky.
Do you think the ProShares-proposed Bitcoin ETF will get approved? Don’t hesitate to let us know in the comments below!
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