Skip to main content

US SEC to Review Rejection of Nine Bitcoin ETF Applications

US SEC to Review Rejection of Nine Bitcoin ETF Applications

The U.S. Securities and Exchange Commission (SEC) will review its decision to reject nine applications to list and trade various Bitcoin (BTC) exchange-traded funds (ETFs), Reuters reportedAugust 23.
On Wednesday, the SEC disapproved a total of nine inquiries from three companies to bring BTC-based ETFs to market, claiming that the products did not comply with the requirements by the “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."
Shortly after, the SEC released letters stating their intention to review the decision, having delegated authority to take action on the applications. However, the letters do not specify a deadline for the decision nor what the review will entail.
ETFs are marketable securities that track an index, commodity, or basket of assets, that are proportionately represented in the fund’s shares. ETFs experience price changes throughout the day as they are purchased or sold on a stock exchange. If the SEC allows a BTC ETF, a fund would purchase an underlying amount of actual BTC and distribute those funds into shares, which further are distributed to shareholders.
Last month, the SEC rejected an appeal for a Winklevoss BTC ETF fund by Bats BZX Exchange, Inc. The first application was rejected by the SEC in March 2017, because of “the largely unregulated nature of BTC markets.”
A day later, SEC Commissioner Hester M. Peirce published a statement of official dissent from the agency’s disapproval of the Winklevoss fund appeal. Peirce argued that the SEC fundamentally erred with its latest decision and that the agency overstepping its “limited role,” when it focused on the characteristics of the underlying BTC market, rather than the derivative. She suggested that the disapproval order will likely “inhibit” the institutionalization of the BTC market.
Source: https://cointelegraph.com/news/pornhub-partners-with-pumapay-to-accept-crypto-as-payments
Labels:

Comments

Post a Comment

Popular posts from this blog

90% of Cryptocurrency Market Facing ‘Extinction-Level Event’: Xapo President

A reckoning coming to the cryptocurrency markets, an “extinction-level event” that’s poised to wipe out 90 percent of the more than 1,800 coins and tokens that aren’t named bitcoin. That’s the prognostication of  Xapo  President Ted Rogers, anyway, who said that the impending altcoin bloodbath will provide discerning investors with an incredible opportunity to load up on  bitcoin  at a discount. “We could be in the midst of the extinction-level event for “cryptoassets” that many maximalists have predicted. 90%+ of @CoinMarketCap list will disappear eventually – might as well happen now,” Rogers wrote on Twitter. “Meantime, lower BTC price means incredible opportunity to buy more #bitcoin.” Ted Rogers @tedmrogers We could be in the midst of the extinction-level event for “cryptoassets” that many maximalists have predicted. 90%+ of @ CoinMarketCap list will disappear eventually - might as well happen now. Meantime, lower BTC price means i...
1 comment
Read more

There Is No ‘Bitcoin’: What the SEC Doesn’t Get About Cryptocurrency

Edan Yago is the founder of  CementDAO , an effort to bring together stablecoins into a unified ecosystem.  He previously was the CEO and co-founder of software firm Epiphyte and helped set up the industry associations DATA and the Stablecoin Foundation.  The views expressed here are his own. —————————- The U.S. Securities and Exchange Commission (SEC) has been gone to significant lengths in an attempt to understand the crypto asset space. This effort is to be applauded. However, the SEC has failed to come to terms with one fundamental aspect of crypto assets and systems. Namely, properly constructed crypto systems do not involve “persons” or “entities” and do not represent a form of property. For this reason, they do not have any analogue in the traditional financial world, nor can they fall under financial regulation. In the traditional financial world, assets are a claim on a specific property. For example, a commodity, shares in a company or a debt o...
5 comments
Read more

Fidelity Confirms Crypto Rumors, Recognizes Potential Of Bitcoin

Fidelity’s Crypto Platform In “Final Testing” The broader crypto industry was shocked on  mid-October , when Fidelity Investments, a Boston-based investment giant with tens of thousands of clients, and similarly impressive assets under management, revealed that it would be launching a pro-Bitcoin crypto platform. This platform, now known as Fidelity Digital Assets Services (FDAS), headed by Tom Jessop, was marketed as a way for Fidelity’s 13,000 institutional clients to gain access to top-of-the-line cryptocurrency custody and trade execution. While many were caught off guard by this announcement, Jessop explained in an  interview  with Laura Shin, a leading crypto journalist, that Fidelity’s Bitcoin ambitions started in 2014, when the company began to research and even test the flagship cryptocurrency. Rumor has it that Fidelity also set up a semi-mining farm, likely in a bid to understand blockchain technology more in-depth. And eventually, after years of exper...
3 comments
Read more