US Securities and Exchange Commission (SEC) has asked for withdrawal of the application for Bitcoin (Bitcoin) derivative ETFs via a formal letter to the applicants, The Cointelegraph reports.
The letter indicates that the SEC is not prepared to approve ETFs on derivativesof financial instruments that are not yet SEC approved or compliant - that is, Bitcoin.
The letter states: “The Trust notes that on a call with the Staff, the Staff expressed the view that it is the Commission’s policy not to review a registration statement for a fund where the underlying instruments in which the fund intends to primarily invest are not yet available.”
“The Staff requested that the Trust withdraw Amendment No. 47 until such time as the underlying instruments in which the Funds intend to invest (i.e., Bitcoin futures contracts) become available for investment,” it continues.
The SEC has been on a slowly increasing regulatory trajectory with Bitcoin, as the cryptocurrency has increased in popularity.
The increase in regulation indicates a general perspective of doubt and need for protection of consumers.