The US Securities and Exchange Commission (SEC) appears to be delaying the review of Bitcoin ETFs, as it sets a new October 26 deadline to file comments for Direxion Daily, GraniteShares, and ProShares.
While the cryptocurrency community still waits patiently for a possible bitcoin ETF approval, the SEC has released details of another deadline that will make the wait a little longer. The commission has set October 26 as the new date for any interested party to file comments in support of, or in opposition to the bitcoin ETF applications by GraniteShares, Direxion Daily and ProShares.
CBOE BZX Exchange files a second amendment for a rule change to list GraniteShares Bitcoin ETF
The details of the new deadline for comments filing came after Cboe BZX Exchange’s latest filing for a proposed rule change to list the GraniteShares Bitcoin ETF application.
The GraniteShares Bitcoin ETF is not looking to invest directly into bitcoin, but into bitcoin futures, which are currently being traded at CBOE Futures Exchange (CFE) as well as the Chicago Mercantile Exchange (CME). GraniteShares took this route as this type of ETF will provide major benefits to clients when it comes to the operation of funds, risk mitigation, and liquidity.
The new amendment states:
The Exchange proposes to list and trade shares of the GraniteShares Bitcoin ETF (the “Long Fund”) and the GraniteShares Short Bitcoin ETF (the “Short Fund”) under Rule 14.11(f)(4), which governs the listing and trading of Trust Issued Receipts on the Exchange. The Shares will be offered by the Trust, which was established as a Delaware statutory trust on November 7, 2016. The Trust will not be registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act.
It further mentions:
The Funds are not actively managed by traditional methods (e.g. by effecting changes in the composition of a portfolio on the basis of judgments relating to economic, financial and market considerations with a view toward obtaining positive results under all market conditions) other than for cash management purposes and the rolling methodology employed by the Sponsor.
Hope for approval of a bitcoin ETF?
On August 22, the SEC preliminarily rejected all bitcoin ETF applications from GraniteShares, Direxion, and ProShares, citing concerns of market manipulation and volatility within the cryptocurrency market. However, it was later revealed that the commission would review the bitcoin ETF applications again and give a later verdict on an unspecified date.
However, with the new amendment filed by CBOE and the new date comment filing date set for October 26, all eyes are now on the commission, as bitcoin enthusiasts and crypto investors all around are hoping that a Bitcoin ETF would be approved and in operation by Q1 2019.