SEC on Bitcoin ETF

SEC Won’t Announce its Decision on Bitcoin ETF Until Next Month

Bitcoin rose higher to push past $4,135, and other major virtual coins also advanced in Asia on this Monday morning.

Over the weekend, the independent agency of the United States federal government, SEC (Securities and Exchange Commission) said that it would not announce its decision until next March on whether to change the Securities Act to allow Bitcoin ETF list. Also, the U.S. Securities and Exchange Commission announced last Friday that it would delay its decision on two Bitcoin exchange-traded funds applications to May 16 and May 19.

The first application Bitcoin ETF application was filed by cryptocurrency index fund platform, Bitwise Asset Management with NYSE Arca. The other was filed by an investment management firm, VanEch, and blockchain startup, SolidX, in partnership with Cboe BZX Exchange.

The U.S. SEC said in a statement –

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change.”

VanEck and SolidX applied for a physically held Bitcoin ETF in January 2019. And, Bitwise did so in the same month.

ETFs are securities which track a bunch of assets proportionately represented in the fund’s shares. A lot of individuals see them as a potential step towards the wider cryptocurrency adoption.

In spite of the uncertainty surrounding Bitcoin ETFs, the Bitcoin investors remained bullish and rose by $4,135.6 at the time of writing.

Ethereum gained 0.99% to $143.19, and Litecoin added 0.89% to $60.77. However, Ripple (XRP) dropped 0.19% to $0.313.

However, this bullish sentiment caused the cryptocurrency market to reach higher by $143 billion.

Somewhere else, the Securities and Futures Commission of Hong Kong issued official direction on security token offerings (STOs), planning to elucidate the legal and regulatory prerequisites for parties engaging in activities related to them.

Security tokens are prone to be ‘securities’ under Securities and Futures Ordinance of Hong Kong. Any STO situated in Hong Kong or focusing on Hong Kong financial specialists will require a permit and register for dealing in securities under the ordinance provision.