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More Bitcoin ETF hopes dashed after SEC says it’s ‘inappropriate’

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According to a note from the Securities and Exchange Commission (SEC), an Exchange Traded Fund (ETF) put forward by Blockforce Capital’s Reality Shares ETF Trusts has been withdrawn.

Reality Shares has requested its application to obtain the SEC’s approval of its ETF to be rescinded on the advice of the commission. A lawyer representing Reality Shares told Coindesk that the SEC thinks it’s “not appropriate to file a registered 40 Act fund with cryptocurrency exposure at this time.”

Though it seems the SEC also took issue with the fact that the proposal had been submitted under a regulatory act that would have led to automatic approval of the ETF within 75 days. The lawyer told Coindesk the SEC took particular issue with this strategy, which may go some way to explaining its removal.

For people hopeful of seeing a Bitcoin BTC ETF on Wall St, the SEC should be making a decision on the VanEck ETF later this month. That is assuming it doesn’t delay its decision for a second time.

Published February 14, 2019 — 09:23 UTC