A nonstarter: Reality Shares withdraws the Bitcoin ETF application

the The Investment provider Reality Shares back row with his application for an exchange-traded Fund (ETF) to track Bitcoin Futures. Thus, the company wants to come before, a rejection of the SEC – this was the ETF application.

By Christopher clover
14. February 2019BTC$3.602,89 0.00% Facebook Twitter LinkedIn xing mail

In anticipatory obedience has withdrawn the investment company Reality Shares, your request for a ETF in the US stock exchange Supervisory authority SEC. The "Reality Shares block force Global Currency Strategy ETF" should reflect, among other things, Bitcoin Futures from CBOE and CME. However, the proportion of these in the Portfolio of the ETF was capped at 15 percent. Reality hoped-for by the fact that the US regulators turn a blind Argus-eye.

that hope has been resolved now – at least for the time being – in the air. 12. February, has withdrawn the Investment company the application for their Bitcoin ETF is "light" formally. Apparently, a recommendation from the SEC staff preceded.

The applicant requested the withdrawal of the PEA [Post-Effective Amendment No. 25 to the request of the staff of the U.S. Securities and Exchange Commission. In connection with the offering of the Fund, no securities were sold.

To Coindesk, a lawyer for Reality issued Shares, however, the following Statement to the calculus of regulators:

I can confirm that we have withdrawn the request] [ ... ] because the [SEC]staff takes the Position that it is not appropriate, a registered 40 Act funds with Cryptocurrencies to be submitted at this time.

From this opinion, the crypto-skepticism that is prevalent among the US regulators-exceptions confirm the rule – far penetrates. By submitting the proposal under the Investment Company Act of 1940, this prospect of an automatic approval after the expiry of a period of 75 days. Consequently, it was mainly to this circumstance, the SEC staff took offense.

Read also: Bitwise will the Bitcoin ETF – Who makes the race?

consolation prize: BCLN

The SEC employees, however, work-to-rule. Already in a Letter of 18. January 2018 warned Dalia Blass, who is responsible for Investment Management at the SEC, the sponsors of the Fund prior to the filing of crypto-linked ETF suggestions:

Should submit a Sponsor of a subsequent Amendment pursuant to rule 485(a) to register a Fund, the currencies to a considerable extent in Crypto or related products invested, would we consider this action to be unfavourable and measures for the protection of Main Street-hold investors for [ ... ], including the recommendation of a stop arrangement [...]

Reality Shares has, apparently, speculated to the fact that the crypto is in your ETF-thrust low enough to be not of this Directive to be affected. Consequently, have to settle for your customers with the Blockchain-Fund BLCN, at least in a broader sense, investor at crypto take.

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