News SEC Forces Reality Shares to Withdraw Bitcoin ETF Application

SEC Forces Reality Shares to Withdraw Bitcoin ETF Application

-

- Advertisment -

The US Securities and Exchange Commission (SEC) has requested the firm behind first Blockchain exchange-traded funds to put its plans to create a bitcoin ETF product on halt.

Reality Shares, a California-based investment company known for being the first to start selling blockchain ETFs, filed a registration form with the SEC earlier this week to list its Bitcoin ETF. However, the agency today requested the issuers to withdraw their filings.

Asia Trading Summit – The Leading Investment Event in China

If approved, NYSE Arca, the exchange owned and operated by the ‎Intercontinental Exchange (ICE)‎‏,‏ would have hosted the proposed listing.

According to the application, which provides details about the ‘Reality Shares Blockforce Global Currency Strategy ETF,’ the new vehicle would not be exclusively comprised of bitcoin future. Rather, the fund, if it comes to life, would invest in sovereign debts, money market mutual funds or other cash equivalents.

SEC Slams the Brakes

“The Fund expects to obtain exposure to Bitcoin Futures by investing up to 25% of its total assets in a wholly-owned and controlled Cayman Islands subsidiary,” and would also include “high-quality, short-term sovereign debt instruments listed for trading on U.S. exchanges and denominated in U.S. dollar, euro, British pounds sterling, Japanese yen and Swiss francs,” the filing further reads.

To this point, the SEC has not approved any issuers’ plans for bitcoin or cryptocurrency ETFs. The regulator refused earlier to review bitcoin ETF applications for tracking cryptocurrency futures, such as the one proposed by Reality Shares, citing that the contracts didn’t exist. However, the process has become murkier even after nearly two years of debuting bitcoin futures on Cboe and CME group.

So despite investor interest, it seems unlikely that the SEC would be comfortable using bitcoin as an underlying asset in a regulated investment vehicle any time soon. The SEC also denied a request to approve the Winklevoss twins’ bid to list its bitcoin ETF on the BATS exchange, while Cboe BZX Exchange shelved its proposal for the coveted license.

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

3 Beginner Friendly Ways to Make Money with Cryptocurrency 2020

In this article, we will explain how to make money with cryptocurrency in 2020. These methods are...

Blockchain, Bitcoin, and Mashed Potatoes

According to studies, over the next 5 years, many of the major supermarkets are expected to...

Different Facets of Biometric Authentication and How They Are Making A Difference in The Financial Sector

When we think of authentication in the true sense, then we find ourselves amid the different proven...

UNICEF’s 125 ETH Investment Took Less Than 20 Minutes and Cost Less Than $20

"The digital world is coming to us faster than we could have imagined," said UNICEF chief Chris...
- Advertisement -SEC Forces Reality Shares to Withdraw Bitcoin ETF Application

Analysis: Is Bitcoin (BTC) Still Viewed As A Dark Web Currency?

There is a long past of Bitcoin (BTC) – due to its anonymity – being used in...

A Beginner’s Guide to Day Trading Crypto

Much of the activity that comes from the crypto-space originates from the crypto-trading community. Buying and selling...

Must read

Blockchain, Bitcoin, and Mashed Potatoes

According to studies, over the next...
- Advertisement -

You might also likeRELATED
Recommended to you