Regulatory Series on Cryptocurrencies: US SEC defers another BTC ETF application to May

ETFs are nothing but securities that monitors a class of securities or assets proportionately represented in the fund’s shares. Aspirant traders/investors perceive them as a budding movement among cryptocurrency gamut.

Of late, the cryptocurrency exchange-traded funds (ETFs) are branded as the trump card by many aspirants of the crypto-avenue who carry a great deal of optimism that exchange-traded funds likely to stimulate cryptocurrencies with more authenticity in retail and institutional investors’ perspectives while providing them with timely accessibility to those who already have a brokerage account.

However, the entire cryptocurrency industry has seen in a struggle ever since the U.S. SEC (Securities and Exchange Commission) declined the Winklevoss twins’ attempts of launching a bitcoin ETFs.

We witnessed an initial registration statement on Form S-1 with the SEC by Bitwise, which is a cryptocurrency asset management firm, that has recently filed another application for Bitcoin ETF with the United States Securities and Exchange Commission (SEC). The previously filed BTC ETF application has already been rejected by the SEC in 2018.

Well, Bitwise announced through twitter about this filing that is intended for a physically-backed Bitcoin ETF listed on the NYSE Arca and the intended BTC ETF likely to monitor the Bitcoin Index.

For now, the US SEC has again deferred their decision on the approval of Bitwise’s Bitcoin ETF application, the regulator is due to its review whether this application fulfills the pre-requisites and ensures safeguards investors’ interests. 

In yet another case, VanEck, SolidX, and CBoE a joint application were also postponed to May which the community reckons for the positive news from the US regulator beaming up with optimism.

The U.S. SEC said in a statement: “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change.”

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 134 levels (which is bullish), while hourly USD spot index was at 9 (neutral) while articulating (at 07:41 GMT). These indices are also conducive for the above short set-up.

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