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SEC Delays Bitcoin ETF Decision Until September

On June 26, the SEC received an application from Cboe Futures Exchange to launch the world’s first Bitcoin ETF. Initially scheduled for a decision next week, the SEC has now postponed the application’s deadline until late September.

Bitcoin ETF Delayed, Crypto Market Responds

The U.S. Securities and Exchange Commission (SEC) has delayed CBOE’s application deadline for a Bitcoin exchange-traded fund (ETF) until Sept. 30, reports Bloomberg.

According to an SEC filing released Aug. 7, the Commission “shall either approve or disapprove, or institute proceedings to determine whether to disapprove” the listing of SolidX shares as commodity-based trust shares by the end of September 2018.

Related: Bitcoin ETF Comments Submitted to SEC Overwhelmingly Positive

Since the application for a Bitcoin ETF was submitted, more than 1,300 comments were received by the SEC–both supporting and denouncing the Bitcoin-backed ETF.

In late-July, the SEC denied Winklevoss-owned Gemini exchange’s Bitcoin ETF application for the second time.

The SEC ruling voted 3-1 against, stating that BATS Global Market’s BZX stock exchange failed to meet the requirements under the Exchange Act–specifically “the requirement that its rules be designed to prevent fraudulent and manipulative acts and practices.”

CBOE’s Bitcoin ETF application is thought to have better chances for approval due to its high minimum share price and exclusive availability to accredited investors.

CBOE’s Bitcoin ETF Application Details

One of the first exchanges to launch Bitcoin futures, CBOE Global Markets, partnered with Van Eyck Investment and SolidX to list the world’s first Bitcoin ETF.

CBOE plans to offer accredited investors access to buy and sell SolidX shares, which are currently valued at approximately 25 bitcoin. If the application is approved, investors will be able to trade a Bitcoin ETF in the form of baskets of 5 SolidX shares (~100 bitcoin) on the CBOE exchange:

“The Trust will issue and redeem ‘Baskets,’ each equal to a block of 5 Shares, only to ‘Authorized Participants.’ The size of a Basket is subject to change.”

According to the SEC application, the Bitcoin ETF will be physically backed by secure holdings of bitcoin in the VanEck SolidX Bitcoin Trust. To maintain liquidity and sufficient reserves, the Trust will trade bitcoin on over-the-counter (OTC) exchanges, both domestically and internationally.

Cover Photo by Grimur Grimsson on Unsplash

Posted In: , Adoption, Regulation

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Jonathan Kim

Jonathan Kim

Former Journalist @ CryptoSlate

Jonathan Kim is a University of Washington student of Finance and cryptocurrency investor with a deep interest in the emerging industry of blockchain applications and cryptocurrency trading. His past experiences involve publishing original daily content for blockchain startups and trading cryptocurrencies using technical analysis principles.

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