WASHINGTON—The U.S. Securities and Exchange Commission will review its decision to reject nine applications to list and trade various Bitcoin (BTC) exchange-traded funds (ETFs).
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," Cointelegraph said.
“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,” Cointelegraph said.
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.”