On Thursday (August 23), the Securities and Exchange Commission of the United States (SEC) indicated that it would be reviewing Wednesday’s SEC decision to reject the nine Bitcoin-based ETFs which had been submitted for review. Bitcoin supporters believe this latest BTC ETF submission has been dismissed out of hand by the SEC.
On Wednesday, the US Securities and Exchange Commission (SEC) chose once again to reject nine proposed applications to create a Bitcoin ETF (Exchange-Traded Fund) which could be traded on the stock market. It was a familiar story – just last month the Winklevoss twins had proposed a well-structured ETF, only to be hit with SEC rejection. Once again, it was a crushing blow to Bitcoin believers who had hoped such a product would prove a breakthrough and aid the no-1 cryptocurrency’s institutional adoption.
SEC Brutally Reject Nine Bitcoin ETF Applications
A breakdown of those ETF’s the SEC had rejected revealed an application for two products from ProShares, two from GraniteShares, and five other proposals from Direxion. The result means that the world is still waiting for its first fully regulated Bitcoin ETF product. Unlike the Winklevoss project, which received a lot of publicity before it was presented to the SEC, most people were unaware of the ETF applications put forward by ProShares, GraniteShares and Direxion until the news broke of their rejection.
Once again, the basis of the SEC’s rejection decision would appear to be that the ETF’s did not meet established requirements such as Section 6 (b) (5) in the exchange law, specifically in the points related to the “fraudulent and manipulative practices” that every national stock exchange must prevent.
It would seem a particularly pious and self-serving argument that the SEC have adopted, as surely every business, every medium, every institution on the planet is open to “fraudulent and manipulative practices”, not just Bitcoin. What’s more, since its auspicious start as a tool well suited for making anonymous purchases on the Dark Web, Bitcoin has undergone a 100% media metamorphosis, and is now viewed as the “Gold Standard” of digital currency, and a highly desirable form of money that holds its value and purchasing power in any city on the planet.
SEC Commissioners To Stage An Internal Review
However, this particular tale may yet have another chapter or two to go: On Thursday the SEC announced that its four commissioners will evaluate Wednesday’s decision, but did not determine by what terms, nor what the revision itself would imply.
SEC employees are delegated to make decisions corresponding to that type of request – i.e., an ETF application. However, the commissioners – those individuals who carry the highest rank in the organization – can review those decisions if they deem it necessary.
In a previous intervention staged by the commissioners, the SEC had been 3-1 in favor of rejecting the requests of a Bitcoin ETF, in that case the proposal put forward by the Winklevoss brothers. On that occasion, the SEC overlords chose to stand by the decision made by the underlings, even though the Winklevoss Bitcoin ETF package was flawless.
ETFs are securities traded on the stock exchange. A Bitcoin ETF traded on the Nasdaq or the New York Stock Exchange (NYSE) could be the difference between cryptocurrency struggling for years, or suddenly attracting a ton of investment and moving to the next level.