Following a delay earlier this month on the VanEck/SolidX Bitcoin exchange-traded fund (ETF) decision, the U.S. Securities and Exchange Commission (SEC) now has another ETF decision that must be finalized this Thursday.

The ProShares Bitcoin ETF has already been delayed a number of times and now the SEC has reached a deadline to make a decision. Considering a slew of negative results that Bitcoin ETF’s have received recently, it seems highly unlikely that this one will get approved.

While admittedly the Winklevoss and VanEck/SolidX ETF results caused an increasing and continued bear market for Bitcoin, it seems investors are coming to accept that no positive decision will come any time soon. Chatter on forums shows an increasing acceptance that while approval will eventually come, it will likely only be in early 2019. As a result, it’s hopeful that a rejection this Thursday won’t have as bad an effect on Bitcoins price as previous rejections have.

Reasons for rejection

A key factor that has resulted in previous rejections is possible manipulation and the inability of any candidate to provide reliable proof of custody showing physical stores of Bitcoin backing the product. The ProShares ETF is no different, being underpinned by Bitcoin futures contracts trading on CME and Cboe Futures Exchange rather than physical holdings.

Last September, ProShares submitted its original Bitcoin ETF proposal but subsequently withdrew a rule change in December following a number of delays and rejections on other ETF’s.

Following significant volatility in late July and early August, Bitcoin has been trading horizontally in the $6000 to $6500 range now for the past few weeks. It seems likely going forward that this range will maintain for a while, barring any unexpected legal or regulatory changes.

Image From Shutterstock