Several firms applying for the exchange-traded funds withdraw their proposals. The companies are retiring following requests by officials from U.S.’ SCE. The businesses are seeking to have a chance to trade with bitcoin. Some of the notable firms whose proposals will not see the light are now out. They include Direxion Shares ETF Trust, ProShares Trust, and Exchange Listed Funds Trust. But even if they are not withdrawing, none of the firms will deal with Bitcoin. All the businesses will face changes from the market changes.On January 8, 2018, ELF and Direxion say they withdraw following a communication from the SEC.
Why Is The U.S. SEC Commission Requesting Withdrawal Of The Bitcoin ETF?
Angela, a secretary with Direxion says what prompts the withdrawal. Before the officials’ statement on the withdrawal, the secretary writes. She says that the firm receives a call from SEC on January 5, 2018. Angela writes, “On January 5, 2018, the staff expresses concerns about the liquidity. There is also the issue of valuation of the underlying instruments. The fund intends to invest. So, they request that the Trust withdraw the Amendment. The withdrawal is temporal. Also, this is to resolve the issue. In response to the Staff’s request, the Trust requests withdrawal of the Amendment.”
The BTC Exchange Traded Fund Traded Last Week
The other firm that is also is withdrawing the proposal ProShares. It also writes a letter on January 9. The letter has similar details. The timing of the request to withdrawal proposals is notable. It is recent when SEC releases other two rule changes. The announcement of the two rule changes everything. They allowed the trading of bitcoin ETF last week. There are other proposals, which SEC now says needs public participation. If this happens, there are chances that more ETF activity will take place.
The Chicago Board Options Exchange (CBOE) Has A Proposal
In the rule change that takes effect last week, SEC maintains that bitcoin is not a traditional asset. It is true that SEC is placing Chicago Board Options Exchange (Cboe) proposal to the public. In this, SEC is showing the world that it needs fairness in public comment. But deep down, SEC has a different history. Everyone knows what SEC is capable of doing.
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Pressing For Withdraws
Experts and investors, in general, know some facts. One of the points in their mind is that SEC is good in pressing for withdraws. So, it is not a surprise that SEC can place the proposal to the public. But, the same SEC can press for withdrawal. In 2017, several companies shut their plans because the agency requests them to do so. It is a norm that once a firm expresses interest in ETF proposal, the organization writes the company.
Will The SEC Succeed Withdrawing The Bitcoin ETF?
If the firm goes ahead with the plans to ask for the ETF, the agency changes the strategy. It starts to look for ways to pressure the company out of the game. The organization is using this approach against many firms. In the end, many companies withdraw.
In recent weeks, the value of the bitcoin is surging. After hitting $20, 000 after Thanksgiving, it is now down to $15, 000. Even at this, many people are considering the Cryptocurrency to be stable
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