The Securities and Exchange Commission of the United States (SEC) by Thursday, August 23rd, will make a decision regarding the bitcoin-ETF from ProShares.
The SEC will consider applications for listing on the New York Stock Exchange (NYSE) of the funds of ProShares Bitcoin ETF and ProShares Short Bitcoin ETF. At the heart of these funds will be traded on CME or CBOE futures contracts for bitcoin. Thus, it is assumed that the new ETFs will be based on derivative financial instruments, rather than the assets themselves.
The first application for the launch of exchange funds ProShares filed in September 2017. However, the company then admitted that the derivatives market for cryptocurrency is still too young. The application filed with the SEC even stated: “there can be no assurance that active bitcoin futures trading will develop or be supported.”
However, in the spring of this year, it became known that the SEC began consideration of proposals for the launch of ProShares Bitcoin ETF and ProShares Short Bitcoin ETF.
By now, the American financial controller has only rejected or postponed bids for the launch of Bitcoin-ETF. For example, in July, the application of the brothers Cameron and Tyler Winklevoss for the opening of the BITS Global Exchange (BZX) -based exchange investment fund was rejected for the second time. In early August, the SEC extended until September 30th the deadline for the decision on the applications for the launch of Bitcoin-ETF, filed jointly by New York companies VanEck and SolidX. SEC decisions negatively affected the rate of the first cryptocurrency and the dynamics of the market as a whole.
In the cryptocurrency community, many have high hopes for bitcoin-ETF, because they are convinced that new funds will significantly revive the market thanks to the inflow of institutional money. However, there are also skeptics who believe that in the foreseeable future, the SEC will continue to reject such applications.
In particular, such an opinion is held by the managing director of Digital Asset Investment Management Brian Courchesne. According to him, the SEC will not approve Bitcoin-ETF because of “concern of the agency with manipulation of the underlying markets.”
“So far, nothing has changed for the better in this respect. It’s hard to prove that bitcoin-markets are resistant to manipulation, ” he said.