The United States Securities and Exchange Commission (SEC) will announce, on Thursday, August 23, its response to Proshares’s requests to create a Bitcoin ETF. The decision has been postponed already three times, so on August 23, the SEC will announce the final decision regarding the Proshares Bitcoin ETF and the Proshares Short Bitcoin ETF.
Proshares requested the approval for the bitcoin ETF to be listed on the New York Stock Exchange Ark on December 26. However, until now the company has received only delays which means that on August 23 the authorities will have to either approve or decline the request.
The sentiment among investors is still negative due to SEC’s recent decisions regarding ETFs which to place the cryptocurrency in the big league of financial investments.
On August 7, the Commission postponed the ETF proposed by Cboe Global Markets in partnership with VanEck Investment and SolidX to September 30. After the announcement bitcoin fell below $ 7,000 and ended an upward rally that lasted for two weeks.
Also, on July 27, the SEC rejected the application filed by the Winklevoss brothers. On this subject, the Commission argued that it could not approve the Winklevoss Bitcoin Trust for “the lack of regulation of the markets where bitcoins are traded” and for the “lack of anti-fraud protection mechanisms for users.”
With the previous events, the investors see little chance of approval for this ETF. However, it might not be the case since Proshares is one of the leading companies in the ETF markets since 2006.
Also, the cryptocurrency market has remained stable for the last ten days, with a bitcoin price ranging between $6,000 and $6,500, which could be interpreted as a sign of cautious optimism.
Both the Proshares Bitcoin ETF and the Proshares Short Bitcoin ETF seek to obtain future contracts for bitcoins by providing investors with the possibility of infusing funds into the cryptocurrency through an investment product.
The SEC has made it clear that without a regulated and decentralized Bitcoin market there will be no ETF because of the lack of clarity in the legislation. Other ETFs waiting for a decision on their applications are Direxion Daily Bitcoin from Direxion Investment dated September 21, and the GraniteShares Bitcoin ETF and GraniteShare Short Bitcoin ETF for September 15.