The United States Securities and Exchanges Commission (SEC) has asked Reality Shares Advisors to withdraw its draft ETF prospectus listed earlier this week, a February 12 notice confirms.
The SEC public document, however, fell short of revealing why officials of the Commission asked Reality Shares to withdraw the proposal.
It only notes that “no securities have been sold in connection with the offering of the Fund, ”a development that ultimately brings to a premature end, the high hopes on what could have been a landmark moment for the crypto markets.
We reported on Tuesday that Reality Shares submitted a prospectus with the U.S SEC for an Exchange Traded Fund (ETF) that will track sovereign global currencies including Dollar, Euro, British Pound, Swiss Franc, and Japanese Yen.
However, the Fund proposed that the remaining 15% of its assets value would be invested in Bitcoin Futures contract offered on the CBOE and CME Group futures market.
That would have meant indirect exposure to the crypto market for those who invest in the Fund with Reality Shares saying in its prospectus that the offering does not directly deal with Bitcoin.
The firm's CEO, Eric Evin even had high hopes that their ETF Fund proposal would meet favor with the SEC because of its low risk. He said after the submission.
“The SEC doesn’t want to approve a full-blown crypto ETF, but this limits exposure to 15%.”
Indeed, the latest feedback from the SEC shows that the regulators are not buying into the idea, at least not yet, or may have requested Reality Shares to make adjustments to their offering.
Whatever the reason is, all hope of Bitcoin exposure to mainstream investors on a national U.S stock exchange in 2019 is not over yet.
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