The US Securities and Exchange Commission extended the deadline to approve or disapprove a proposed rule change associated with NYSE Arca’s potential listing of Direxion’s bitcoin-tied exchange-traded funds.
On Tuesday, the Federal Register published a notice from the US Securities and Exchange Commission (SEC) dated July 18, 2018. The agency has postponed by 60 days its decision about a proposed rule change that might allow NYSE Arca to list and trade exchange-traded funds (ETFs) linked to the price of bitcoin. The SEC “shall either approve or disapprove the proposed rule change” by September 21, 2018.
Direxion Daily Bitcoin Bear 1X Shares;
Direxion Daily Bitcoin 1.25X Bull Shares;
Direxion Daily Bitcoin 1.5X Bull Shares;
Direxion Daily Bitcoin 2X Bull Shares; and
Direxion Daily Bitcoin 2X Bear Shares.
As one might guess based on their titles, these ETFs could allow consumers to take long or short positions, betting on the price of bitcoin. As indicated by the coefficients, some of these ETFs could allow traders to take leveraged positions (meaning that the rises and falls would be amplified for daring speculators).
In March, ETHNews reported that the European Securities and Markets Authority published leverage limits related to contracts for differences, binary options, and cryptocurrency. It’s not apparent whether the SEC has considered similar standards.
Matthew is a full-time staff writer for ETHNews with a passion for law and technology. He graduated from Georgetown University where he studied international economics and music. Matthew enjoys biking and listening to tech podcasts. He lives in Los Angeles.
ETHNews is committed to its Editorial Policy
Like what you read? Follow us on Twitter @ETHNews_ to receive the latest SEC, Securities and Exchange Commission or other Ethereum business and finance news.