SEC Delays Ruling on Five Bitcoin ETF Applications

SEC Delays Ruling on Five Bitcoin ETF Applications

The Securities and Exchange Commission (SEC) has announced that it will delay its ruling on whether or not to give approval to a rule change relating to five bitcoin ETF applications filed by fund provider Direxion.

The ETFs in question are Direxion Daily Bitcoin Bear 1X Shares, Direxion Daily Bitcoin 1.25X Bull Shares, Direxion Daily Bitcoin 1.5X Bull Shares, Direxion Daily Bitcoin 2X Bull Shares, and Direxion Daily Bitcoin 2X Bear Shares.

According to the SEC press release, on Jan. 4, 2018, NYSE Arca, Inc. submitted a filing for a proposed rule change which would permit the listing and trading of shares of the ETFs under the NYSE Arca Rule 8.200-E.

In response to this, the SEC indicated that it would need more time to study and analyze the proposed changes to make sure that they are in line with its standards.

Signed by Assistant Secretary Eduardo A. Aleman on behalf of the SEC Division of Trading and Markets, the statement specifically mentions that the SEC had concerns about whether the changes would be in line with Section 6(b)(5) of the SEC Act.

This section states, amongst other things, that the rules of a national securities exchange must be designed to “prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and to protect investors and the public interest.”

Culled from CCN

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