The US Securities and Exchange Commission (SEC) has postponed the decision on Bitcoin ETF for Direxion Investments. Therefore, the agency still needs some time to weigh the reasons for and against the exchange-traded funds for the leading cryptocurrency.
However, the crypto community is waiting for the decision of the US Securities and Exchange Commission regarding the CBOE proposal. Right now, the SEC is deliberating on whether to allow some companies to open Bitcoin ETFs. In the case of Direxion Investments, the regulators have postponed the decision for September.
“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change. Accordingly, the Commission, … designates September 21, 2018, as the date by which the Commission shall either approve or disapprove the proposed rule change.”
With the date shift for the Bitcoin ETFs, the US agency is extending its original 90-day reflection period. According to them, they should have already made the decision in August.
Approval by the SEC would have a significant positive impact on the Bitcoin price. Above all, it would be the official confirmation of an authority that would signal security to investors.
It would also be easier for novices to invest in cryptocurrencies through the exchange-traded index funds.
The introduction of Bitcoin Futures in December last year had a significant impact on the Bitcoin price. In addition, the expiration of the short positions of the futures contracts can be combined with the current price rise.
The price of bitcoin currently stands at $ 8,284.53 a remarkable 34 percent increase. The market cap is $142 billion. Within the last month, the market dominance of bitcoin rose from 42 percent to 47 percent.