The Bitcoin ETFs rejections in review
There will be a review of the nine Bitcoin ETF exchange-traded funds rejections by the U.S. Securities and Exchange Commission (SEC) as reported on August 23.
On Wednesday, there was a decision from the SEC to disapprove the three Bitcoin ETFs because there was no compliance with “Exchange Act Section 6(b)(5), in particular, the requirement that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices.”
After a few hours, the SEC decided to release information that they will be reviewing the decisions that have been made. They have appointed delegated authority to take action on the applications. The information provided, however, gave no specific deadline for the final decision nor what the review will entail.
Benefits of exchange-traded funds to the Economy
ETFs are marketable securities which trace an index, commodity or basket of assets, that are proportionately represented in the fund’s shares. ETFs experiences prices changes because the ETFs are purchased or sold on a stock exchange. If a Bitcoin ETF gets approved, they would purchase a fund with a certain amount of BTC then these funds would be distributed into shares and will further be given to shareholders.
The SEC last months rejection of the Winklevoss BTC ETF fund by Bats BZX Exchange, Inc. The first application was rejected by the SEC in March 2017, this was because of the fact that the Blockchain and Cryptocurrency market is unregulated.
The day after, the SEC Commissioner Hester M. Peirce published an article about the dissent from the agency’s disapproval of the Winklevoss’s fund appeal. Peirce gave an argument on the fact that the SEC fundamentally deviated from the latest decision on the agencies to overstep its limited role when they focused on the basics of the underlying BTC market, rather than the derivatives. She suggested that the disapproval order will likely alter the institutionalization of the BTC market.
What are your opinions on the decisions of the SEC and this pending review? please feel free to leave a comment below.
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