US SEC to Soon Review Decision Rejecting Nine Bitcoin ETFs

Aug 26, 2018 at 09:38 // News
Author
Coin Idol
SEC to reject nine bitcoin ETFs

There is hope that the US Securities and Exchange Commission (SEC) might change its decision to deny nine Bitcoin-related Exchange Traded Funds (ETFs).  Brent Fields, the SEC secretary revealed in a letter to the New York Stock Exchange (NYSE) that the commission chairman and commissioners are considering whether to review and revise the action authorized and delegated to its staff, adding that until that time the current decision is pertinent.

“This letter is to notify you that, pursuant to Rule 431 of the Commission's Rules of Practice, 17 CFR 201.431, the Commission will review the delegated action. In accordance with Rule 431 (e), the August 22 order is stayed until the Commission orders otherwise,” the letter reads. “The Office of the Secretary will notify you of any pertinent action taken by the Commission,” it adds.

The same letter was addressed to Chicago Based Exchange Operator ( CBOE), that was ready and prepared to list two of the nine BTC ETFs together with the NYSE.

This letter comes after the NYSE Arca had the denial and overture for nine BTC ETFs denied by the SEC on Wednesday, August 22. The ETFs were created by GraniteShares,  ProShares and Direction Asset Management. Five of the denied ETFs come from Direxion and are meant to offer investors the opportunity to trade n the Bitcoin price. GraniteShares and ProShares came with two BTC ETFs each.

After the SEC's rejection, Bitcoin began an downward trend, dropping about 4% in less than 24 hours.

Manipulation Possibilities

Chris Matta, co-founder of Crescent Crypto Asset Management, said that we wouldn't observe those BTC ETFs ratified by the SEC any time soon.

“The markets are small and the volumes on some of these exchanges are low, which makes it such that manipulation is possible,” Matta said.

On Wednesday, the SEC commissioners carried out a vote of 3-1 to reject the nine applications, with Hester Peirce, a Republican commissioner named the only person in favor.

On her Twitter platform, Hester elaborated the decision for the imminent review.

Bitcoin is right now slightly moving with an upward trend, gaining 1.5 percent over the past day.