Bitcoin ETF Rejections Under 'Review' by SEC

Yesterday, nine Bitcoin ETF rejections were issued by the U.S. Securities and Exchange Commission.

In a possible change of heart, the SEC has placed the Bitcoin ETF denials under review.

The U.S. Securities and Exchange Commission is currently reviewing its disapproval of nine Bitcoin ETF proposals by ProShares, Direxion and GraniteShares, according to three letters sent by SEC secretary Brent Fields.

In the letters, addressed to NYSE Group Senior Counsel David De Gregorio, Fields states that "The Commission will review the delegated action" on all three companies' Bitcoin ETF applications.

"This letter is to notify you that, pursuant to Rule 43 I of the Commission's Rules of Practice, 17 CFR 20 I.43 1, the Commission will review the delegated action. In accordance with Rule 431, the August 22 order is stayed until the Commission orders otherwise. The Office of the Secretary will notify you of any pertinent action taken by the Commission."

SEC Commissioner Hester Peirce took to Twitter to announce the news on Aug. 23.

The Commission may review the staff's action, as will now happen here.

On Aug. 22, the SEC filed nine rejections to Bitcoin exchange-traded fund applications from ProShares, Direxion and GraniteShares, according to two separate filings.

"The Commission is disapproving this proposed rule change because, as discussed below, the Exchange has not met its burden under the Exchange Act and the Commission's Rules of Practice to demonstrate that its proposal is consistent with the requirements of 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. Among other things, the Exchange has offered no record evidence to demonstrate that bitcoin futures markets are 'markets of significant size.'".

There are still several Bitcoin ETF applications under review by the SEC. The VanEyck-CBOE Bitcoin ETF proposal is set for a decision on Sept. 30.Cover Photo by Blaque X on Unsplash.