U.S. SEC Pledge to Review Bitcoin ETFs Disapproval
Bitcoin Exchange Traded proponents were left disappointed on Wednesday when the US Securities and Exchange Commission (SEC) staffers disapproved nine ETF filings. However, according to a Reuters report on August 24, 2018, there appears to be a glimmer of hope for ETF hopefuls as the SEC’s top officials are set to review those decisions.
Not over yet
As previously reported by BTCManager, the SEC rejected the Bitcoin ETF application of ProShares, GraniteShares, and Direxion on August 22, 2018, stating that their filings did not meet the requirements and that they were not convinced the products would escape to fraud or market manipulation.
However, the securities watchdog has reportedly made it clear in its letter that the rejection of the applications will be reviewed further by four commissioners and the SEC chair, Jay Clayton if he so desires.
SEC commissioner Hester Peirce explained on Twitter on August 23, that: “Yesterday’s staff orders disapproving SRO rules related to a number of bitcoin ETFs are stayed pending Commission review,” she further noted that:
“The Commission (Chairman and Commissioners) delegates some tasks to its staff. When the staff acts in such cases, it acts on behalf of the Commission. The Commission may review the staff’s action.”
The announcement was greeted with mixed reactions on the social media platform. Some crypto enthusiasts were full of praise for Peirce, while some others argued the review might not change the decision as five votes are already in favor of the Bitcoin ETF rejection.
It’s worth noting that back in July, when the SEC rejected the Winklevoss Bitcoin Trust ETF filing, Peirce strongly criticized the decision of the commission. In her dissent letter, she said that the:
“Commission’s approach undermines investor protection by precluding greater institutionalization of the bitcoin market.”
Bitcoin ETF Controversy Continues
Of a truth, the coming of a Bitcoin Exchange Traded Fund would attract more institutional investors to the cryptospace, and many believe it would send the price of bitcoin to the moon.
Despite that, however, some enthusiasts are still against the move. On August 23, 2018, BTCManager reported that techpreneur and bitcoin advocate, Andreas Antonopoulos has warned that the much-awaited bitcoin exchange-traded fund may increase crypto market volatility and decrease individual control.