Another proposal for Bitcoin ETF’s that was filed a long 8 months ago in December 2017, will be reviewed with a final deadline decision on 23rd August, Thursday.
It comes after Winklevoss’s Bitcoin ETF was painfully rejected by the SEC, along with several other Bitcoin ETF’s being delayed. The main question is whether this time the two ProShares ETF’s will be approved?
ProShares is a division of ProFunds Group and is one of the largest providers of ETFs. It has over $30 billion in assets making it a leader in the ETF market.
The proposal for trading ProShares Bitcoin ETF and the affiliated Short Bitcoin ETF was filed on the 4th of December 2017 by NYSE Arca which is the top American exchange for listing and trading ETFs. The notice of the filing was successfully published in the Federal Register on 26th December 2017.
It is underpinned by the already existing Bitcoin futures contracts that exist on the market, instead of physical Bitcoin holdings. Thus it is a major difference from most of the ETF’s which are delayed such as the SolidX and VanEck ETF’s.
ProShare’s being a long respected ETF trading platform has a comparative advantage compared to the other ETF’s given its specialisation in ETF’s.
Sentiments for Proshares Bitcoin ETF will be well watched after SEC Chairman Hester Peirce’s voting in favour of Winklevoss’s ETF proposal. Her public statement given afterwards brought in positivity for the Cryptocurrency market. It highlighted the fact that the SEC has overstepped the decision making process when rejecting the Winklevoss Bitcoin ETF.
In the public statement, she pointed out the need for innovation by spelling out how the SEC was allowing innovation to prosper in the markets.
“More generally, the Commission’s interpretation and application of the statutory standard sends a strong signal that innovation is unwelcome in our markets, a signal that may have effects far beyond the fate of bitcoin ETPs”, Peirce said.
Her Twitter rose from 1700 followers to over 17,700 followers at the time of writing following her public statement favouring Bitcoin ETF’s. It even gave rise to cryptocurrency enthusiasts calling her ‘Crypto Mom.’
Twitter user ‘Jake Chervinsky’ who is a lawyer and a Government enforcement defence & securities litigation according to his Twitter bio, posted several essential points on the decision by the SEC on Thursday.
However, one Tweet that stood out was the fact that this decision is critical as it can stand as a precedent for the remaining Bitcoin ETF’s in line this year.
2/ These ETFs are important: they’re the first ones that the SEC will approve or deny in 2018 & will set the stage for others in coming months.
Of course, nobody knows what the SEC will decide, but we can use their recent statements to figure out what factors they’ll consider.
— Jake Chervinsky (@jchervinsky) August 17, 2018
A Twitter user by the handle of ‘crypToBanger’ posted the schedule of Bitcoin ETF decisions to be made in the next few weeks-
— ☄️ paTo paTinYo 🗿 (@crypToBanger) August 20, 2018