In August, the Securities and Exchange Commission confirmed that it would be reviewing its rejection of nine Bitcoin ETF applications just one day after it rejected them. This week, regulators provided a deadline that suggested a final decision could be rendered before the end of October.
The SEC is currently reviewing proposed rule changes that would allow the nine ETF proposals to move forward. The cases involve ETF applications from three separate entities seeking to list their ETFs on major trading platforms. Direxion accounts for five of the proposals, with ProShares submitting two others. Both companies are trying to list their ETFs on the NYSE Arca platform. In addition, the SEC is reviewing two applications from GraniteShares for ETF listings on CBOE.
The agency has requested additional information from “any party or other person” who wishes to submit statements in support of or opposition to the ETFs. Interested parties were told to submit their statements by no later than October 26, 2018.
While some have greeted the news with optimism, many observers remain skeptical that the SEC will reverse course. The agency’s prior reasoning for rejecting the ETFs was based in part on a finding that the ETFs in question would not comply with the Exchange Act’s provisions that protect against fraudulent and manipulative practices.