- The Securities and Exchange Commission is looking into its decision to deny the Bitcoin exchange-traded fund.
- The SEC said that the ETF filing from Bitwise Asset Management and NYSE Arca will be going back under review.
- Charles Lu said he is doubtful that the process of approval will be a speedy one.
The United States Securities and Exchange Commission (SEC) is looking into its decision to deny the Bitcoin exchange-traded fund (ETF) that was filed by Bitwise Asset Management and NYSE Arca over a year ago at the time of writing.
The SEC said that the ETF filing from Bitwise Asset Management and NYSE Arca will be going back under review. As announced on 18th November, the commission adds that this comes after the earlier rejection undergrounds of not meeting the necessary requirements.
Regulators said last month that the applicants were not able to hit the right requirements in regards to potential market manipulation as well as illegal movement.
The SEC wrote at the time:
“The Commission is disapproving this proposed rule change because, as discussed below, NYSE Arca 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 Exchange Act Section6(b)(5), and, in particular, the requirement that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices.”
CEO of the privacy ledger protocol Findora, Charles Lu recently said he is doubtful that the process of approval will be a speedy one:
“For a bitcoin ETF proposal to gain SEC approval, the sponsor will need to prove that real price discovery is happening as opposed to market manipulation… the SEC will require surveillance-sharing agreements with significant cryptocurrency exchanges — a requirement that few foreign-domiciled exchanges will agree to.”
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!
Adrian Barkley , 2019-11-19 15:30:00 ,