SEC Delays Decision on Asset Manager's Bitcoin ETFs Until September

The SEC has delayed a decision on whether to approve five bitcoin-related ETFs, public documents reveal.

Jul 24, 2018 at 2:10 p.m. UTC
Updated Sep 13, 2021 at 8:12 a.m. UTC

The U.S. Securities and Exchange Commission (SEC) has delayed making a decision on whether to approve five bitcoin-related exchange-traded funds (ETFs) until September, public documents reveal on Tuesday.

In the latest edition of the Federal Register, the SEC explains that it is postponing any decision over the possible approval of ETF proposals filed by Direxion Investments in January – one of which will match bitcoin's price and four of which are based on the cryptocurrency's price movements.

The SEC states:

"The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change. Accordingly, the Commission, ... designates September 21, 2018, as the date by which the Commission shall either approve or disapprove the proposed rule change."

The SEC added that it only received two comments on the proposed ETFs.

While the crypto community largely seems excited at the prospect of a bitcoin ETF, Atlantis Asset Management chief investment strategist Michael Cohn said any approval would be "insane," CNBC reports today.

"Then they're putting a rubber stamp on it as an asset, and I don't think governments want to go there yet. It just seems as though it's not something I'd want to put my clients into in any way, shape or form. You can only be embarrassed," he added.

Notably, none of the ETF proposals being postponed are from VanEck and SolidX, which are currently under discussion by the wider crypto community. More than 100 comments have been submitted for that proposal, and a decision may occur as soon as next month.

SEC image via Shutterstock

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