Progress has begun to develop a bitcoin exchange-traded fund (ETF), and it is set to be distributed very soon. New Bitcoin ETF soon to be released by NYSE Arca filing.
The U.S. Securities and Exchange Commission (SEC) disclosed on Feb. 11 that it has started to look into a bitcoin ETF rule change proposals. This is documented by NYSE Arca and Bitwise Asset Management. The proposition itself was registered in the Federal Register on Feb. 15, which means the controller has 45 days to settle its underlying choice on whether to favor, dismiss or broaden the proposition.
A timeframe of 240 days have been given to the SEC at most to make an official conclusion on whether to support or reject the ETF.
Responses can be filed by the general public to the rule change proposition, and they have three weeks in which to present any opinions they would like submitted for consideration.
New Investors, Increase in Liquidity
Advocates of bitcoin ETFs are of the opinion that they will attract new investors which will result in increase of liquidity to the market.
Earlier this year, NYSE Arca and Bitwise made public their decision to release a bitcoin EFT. Also, the very same day, they filed the rule change proposal. The filing was not submitted the Federal Register by the SEC because of the government shutdown, which means the organization was not looking at the proposition.
With Friday’s version of the Register beginning the most recent commencement, that changed.
The SEC still hasn’t approved a bitcoin ETF, dismissing a few and requesting that others pull back their entries.
Recently SEC commissioner, Robert Jackson, said that he is confident a proposal which matches all of the regulatory guidelines. Also, they will be accepted soon enough.
Bitcoin analyst, Nik Bhatia, recently revealed that current funds products, for example, the Grayscale Bitcoin Investment Trust, may already be filling a similar need. He is one of the naysayers who does not believe an EFT increase liquidity.
The clock has not yet begun for this ETF. While the SEC has posted the VanEck/SolidX proposition on its website. This one presently has not shown up in the Federal Register.