No, SEC isn't Approving a Bitcoin ETF This Month, Don't Get Too Excited

It is highly unlikely for the SEC to approve the first Bitcoin ETF in US markets within the next two months.

Earlier this week, publications reported that the deadline for the rule changes initiated by GraniteShares and Proshares Bitcoin ETFs, which were rejected by the SEC in August, is Oct. 26.

Due to the objection of SEC Commissioner Hester Peirce, the nine rejected Bitcoin ETFs were given the chance to file rule changes with the SEC to potentially overturn the commission's decision.

The ETFs of GraniteShares and Proshares will not be approved or declined by the end of October and the deadline of the SEC to provide a decision on the ETFs is in November.

Government enforcement defense and securities litigation attorney of Kobre and Kim LLC, Jake Chervinsky explained that the process of receiving the final decision by the SEC for the nine ETFs will take significantly longer than the expectations of investors in the market.

"The deadline is for the public to submit statements of support or opposition, not for the SEC to finish its review. The SEC will then review the statements & write an order. Could be a while."

Previously, subsequent to the SEC's announcement to review the nine ETFs again, Chervinsky emphasized that under existing regulations, any commissioner can request the SEC to re-evaluate ETF filings.

It is likely that in November, the SEC will echo its sentiment that the Bitcoin futures market is simply not mature enough to support an ETF. Last month, the SEC rejected the ETF filings of nine institutions because they based the price of ETFs on the Bitcoin futures markets operated by CME Group and Chicago Board Options Exchange.

If the ETFs still rely on the futures market as the base price of Bitcoin, then the SEC will deny the ETFs once again by the end of this year.

The final deadlines of the two ETFs are in early 2019 and thus, the first Bitcoin ETF is not likely to be approved by the commission until early 2019.Cover Photo by Nathan Dumlao on Unsplash.