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Crypto Rises; SEC Delays Decision on Bitcoin ETF

Published 04/01/2019, 12:52 AM
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Investing.com - Bitcoin rose on Monday, pushing past the $4,100 level, while other major digital coins also advanced.

Over the weekend, the U.S. Securities and Exchange Commission (SEC) said it will not announce its decision until next month on whether to change the Securities Act to allow Bitcoin exchange-traded funds. The SEC announced last Friday it would delay its decision on two Bitcoin ETF applications to May 16 and May 19.

The first application was filed by crypto index fund platform Bitwise Asset Management with NYSE Arca. The second was filed by investment management company VanEck and blockchain startup SolidX in partnership with Cboe BZX Exchange.

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change,” the SEC said in a statement.

Bitwise applied for a physically held Bitcoin ETF in January 2019. VanEck and SolidX did so in the same month.

ETFs are securities that track a basket of assets proportionately represented in the fund’s shares. Many see them as a potential step towards the wider adoption of cryptocurrencies.

Bitcoin rose 0.97% to $4,126.6 by 11:41 PM ET (03:41 AM GMT). Ethereum gained 0.99% to $142.99 and Litecoin added 0.89% to $60.967. XRP dropped 0.19% to $0.31021.

The bullish sentiment sent the crypto market cap higher to $143 billion.

Elsewhere, Hong Kong’s Securities and Futures Commission issued official guidance on security token offerings (STO), intending to clarify the legal and regulatory requirements for parties that engage in activities related them.

Security tokens are “likely to be ‘securities’” under Hong Kong’s Securities and Futures Ordinance. Any STO based in Hong Kong or targeting Hong Kong investors will need a license and register for dealing in securities under the provisions of the ordinance.

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