Bitcoin ETF : Rumors vs Reality
Recently the internet was abuzz with an article written by a renowned authority in cryptocurrency breaking news, CoinDesk about the SEC delaying the processing and approval of ETF license applications for Bitcoin. But this is hardly the fact.
The article was initially named, “SEC is Delaying the Decision on Bitcoin ETFs Until September” was later on changed to “SEC Delays Decision on Direxion’s Bitcoin ETFs Until September”. And the online publication is being called for media manipulation of the market because literally no research was done into the matter before having written and subsequently naming the article. What is actually happening at the SEC is that they are delaying various ETFs across industries.
And the one that the CoinDesk article was referring to was in fact filed by Direxion Investments in January and there is no deliberate delay on their part.
The thing with ETF licenses is that every investment banking firm applies to them and not all of them get approved. So it is not a ploy or a move with a hidden agenda because from a large number of applications only a handful get approved and normal ETF licenses take time.
It requires immense stressing and reiterating that the SEC is not delaying any ETFs that were filed either by Direxion Investments nor the VanEck and Solidx’s company, that was filed on their behalf by the Chicago Board Options Exchange. It is simply under processing and will take time.
It is important that the cryptocurrency community understand that the line of discussion that the SEC is deliberately delaying ETF licensing is incorrect. It is further important that the community understand that there is a lot of speculation that is surrounding Bitcoin and the cryptocurrency market as of now, as the coin is on an upward trend. And it has never been as imperative as it is now, to not mix up headlines and stories that are doing the rounds and feed speculative rumours because there is a lot at stake.
Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.