The U.S. regulator of the securities market will soon announce a decision regarding another two applications for the creation of exchange-traded funds (ETFs). Whether approved applications for the registration of the Bitcoin ETF and ProShares ProShares Short ETF Bitcoin, it will become clear on August 23: in this period, the Commission on securities and exchange Commission (SEC) must approve the registration of the Fund, or reject the request.
Recall that less than a month ago, the regulator has deferred consideration of applications by several ETFs, including the project VanEck, SolidX and the Cboe. However, this time the SEC may not delay for a decision on the proposal filed by ProShares, together with NYSE Arca, under their own rules.
Application ProShare, which originally was submitted to the Commission in December last year, does not mean the tool based directly on the stocks of cryptocurrencies: instead, the tool is based on futures contracts on bitcoin. Thus, the price of ETF will be determined on the basis of such rate contract traded on the CME exchange or CBOE.
While ProShares initially made the offer on creation on the basis of the ETF futures contracts in September 2017, however, then representatives of the company noted that the futures market is still in its infancy, and therefore “cannot be guaranteed” that the trade on it will be active, and whether it will “develop or be maintained”.
Subsequently, she ProShares Trust filed an application for review of its proposal to change the rules, filed December 19, 2017, where was outlined the concept bitkoenig ProShares and Short Proshares, as well as ProShares Bitcoin Futures/Equity Strategy ETF and ProShares Bitcoin/Blockchain Strategy ETF.
This step was caused by the decision of the SEC to postpone the conclusion on a number of applications for the creation of ETFs, due to concerns related to the high volatility of bitcoin. Around the same time, a number of similar proposals were withdrawn, companies such as Direxion Shares ETF, VanEck and First Trust Advisors.
However, the SEC has announced that it will consider proposals involving the establishment of funds with futures on the bitcoin basis.
And yet, to date, the regulator has deferred consideration of such proposals, or reject them, as happened with the application of the exchange Gemini founders Cameron and Tyler Winklevoss (Cameron and Tyler Winklevoss), reviewed by the regulator again on the basis of appeal filed after the first failure in the spring of 2017.