However, it's not nearly as dire as it might seem upon first glance!
At first glance this sounds like bad news, as the second US Financial Services firm has withdrawn their bid to create an exchange traded fund based on futures contracts related to Bitcoin (and other virtual currencies).
It sounds even worse when you find out that this withdrawal appears to be at the request of the SEC.
However, things are not quite as dire as the doom and gloomers might have you believe.
You see, the SEC is requesting these withdrawals simply because these ETFs are trying to be tied to something that technically isn't even trading yet.
Derivatives markets don't even technically exist yet.
So, the SEC merely is asking these firms to wait until Bitcoin derivatives markets are actually up and trading before making a request to have an ETF tied to them.
That's it, that's the only reason for the SEC's request.
The official release can be seen here:
"The Trust notes that on a call with the Staff, the Staff expressed the view that it is the Commission’s policy not to review a registration statement for a fund where the underlying instruments in which the fund intends to primarily invest are not yet available. The Staff requested that the Trust withdraw Amendment No. 47 until such time as the underlying instruments in which the Funds intend to invest (i.e., bitcoin futures contracts) become available for investment."
The SEC doesn't want to review something tied to something that technically doesn't even exist yet.
Much ado about nothing.
There you have it.
It's not that the SEC doesn't want Bitcoin related ETFs that are tied to derivatives markets, it's that the SEC doesn't want Bitcoin related ETFs tied to derivatives markets BEFORE there is even a derivatives market in the first place.
Which sounds perfectly logical to me.
Anyone trying to spin this latest news as anything but a non-event hasn't really read all the details just yet.
Stay informed my friends.
Sources:
https://www.coindesk.com/sec-pushes-back-bitcoin-derivatives-etfs/
Image Sources:
https://news.bitcoin.com/sec-rejects-rule-change-for-bitcoin-etf/
http://theatreanddance.arts.usf.edu/content/templates/?z=10&a=4658
