Bitcoin ETFs: SEC Postpones Decision on Direxion’s Proposals Until September

Avi Rosten

The SEC (the US Securities and Exchange Commission) has said today that it has deferred its decision on approval for five bitcoin ETFs (Exchange Traded Funds) until September.

The proposals, filed by Boston-based ETF provider Direxion Investments on January 4th comprise five applications: one for an ETF directly linked to BTC price, and four related to its price variation.

The SEC's report in the Federal Register – its Daily Journal – explains that the Commission:

finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change. Accordingly, the Commission, ... designates September 21, 2018, as the date by which the Commission shall either approve or disapprove the proposed rule change.

Importantly the SEC has not made any comment with respect to the highly-anticipated decision regarding ETF proposals from VanEck and SolidX – which have generated enormous expectation in the crypto-community, as well as over 250 comments on the proposal on the SEC website. The Direxion application in contrast, at the time of writing had only two comments.

With many believing this market excitement surrounding ETFs to be behind much of the bullish activity that prompted bitcoin’s substantial rise in price in the last week and today’s push past $8,000, prominent figures believe that the time is ripe for serious institutional investment into cryptocurrency.

Mike Novogratz, founder and CEO of Galaxy Digital Capital Management, in this vein recently remarked that he believes a “herd of institutional investors” is coming towards the cryptocurrency ecosystem” adding that they are “slowly coming to the realization that blockchain will be internet or Web 3.0.”

 

Featured Image Credit: "Securities and Exchange Commission" by "Scott S" via Flickr; licensed under "CC BY 2.0"

Dutch Court Orders Facebook to Remove Fraudulent Crypto Advertisements

  • Dutch court rules that Facebook must remove fraudulent advertisements using the likeness of celebrities to promote crypto scams.
  • Billionaire John De Mol previously sued Facebook over adverts using his image to promote bitcoin. 

A Dutch court has ordered social media platform Facebook to remove fraudulent advertisements that use the images of celebrities to promote crypto-related scams. 

According to a report by Reuters on Nov. 11, Facebook will have to take responsibility for the plethora of scam advertisements that are misrepresenting celebrities and other well-known figures to push crypto-related investments.

The ruling follows a high-profile lawsuit between Dutch billionaire John De Mol, who sued Facebook after the company failed to remove advertisements using his image to defraud investors in cryptocurrency scams. De Mol said after three months of negotiations it was “impossible” to come to an agreement with Facebook over the fake adverts. 

In September, it was reported that fraudulent Telegram advertisements were appearing on Russian Facebook, using CEO and founder Pavel Durov’s image to sell a scam investment into TON. New Zealand TV personality Duncan Garner also complained about the social media platform hosting ads using his image to sell bitcoin and exotic cars. 

The court’s summary judgement said that Facebook can no longer take a neutral stance towards the adverts, 

Facebook’s arguments that it is just a neutral funnel for information and therefore cannot be obligated to act, is not acceptable...The company plays too active a role with respect to advertisements, which form its primary business model to argue that.

Facebook must pull the fraudulent ads or face fines of up to 1.1 million euros ($1.2 million).

Featured Image Credit: Photo via Pixabay.com