SEC Adds 9 Rejected Bitcoin ETFs in the ‘To Be Reviewed’ List

The U.S. Securities and Exchange Commission (SEC) has suspended its order disapproving the proposed rule change filed by CBOE for exchange listing.

In a series of documents published on SEC’s site on October 5, the federal agency has stashed the rejected proposals for review again.

In January this year, Chicago Board Options Exchange proposed a rule change to list and trade shares of the GraniteShares Bitcoin ETF and the GraniteShares Short Bitcoin ETF issued by the GraniteShares ETP Trust under BZX Rule.

Here is the timeline for how it happened:

January 5, 2018—Cboe BZX Exchange files proposal.
February 22, 2018—SEC designates a longer period for the decision.
April 5, 2018—Proceedings begin.
June 28, 2018—SEC delays decision.
August 22, 2018—Trade and Marketing division of SEC disapproves the proposal.

The nine ETFs proposed by ProShares and Direxion were disapproved due to their tendency to be manipulated and their framework found not to be ‘airtight’ against fraud. Apparently, the SEC isn’t dazzled by the prospect of huge economic capacity only.

SEC announced the ‘to be reviewed’ development back in August in accordance with Rule 431 of SEC regulations.

Under Rule 431 of the SEC’s Rules of Practice, the commission may affirm, reverse, modify, set aside or remand for further proceedings, in whole or in part, any action made pursuant to authority delegated.
Clause (c) of this rule states that ‘The vote of one member of the Commission, conveyed to the Secretary, shall be sufficient to bring a matter before the Commission for review.’

The member in CBOE’s review case was Hester Pierce, the SEC’s soft corner for bitcoin. In the past, she has made several remarks on SEC’s hesitation to go forward with ETF approvals. Known in the crypto world as ‘Crypto Mom’, she is the dubbed a hero in the investor world for championing for the cryptocurrency world, though she has stated on numerous occasions that she is not on anyone’s side except the general public.

By November 5, 2018, one month from now, any party or another person may file a statement in support of, or in opposition to, the action made pursuant to delegated authority.

In this time period, the SEC dashed hopes on another Bitcoin ETF application proposed by VanEck and SolidX by delaying the ruling on that fund until at least December.

Crypto community has its hopes high again although history hasn’t been so favorable to them. On the positive side, this news may warm up the bitcoin market which has been in slumber for months now.

Sarim Mehmood

An electrical engineer to be. Sarim is a blockchain & crypto enthusiast and an early investor in ETH and Ethereum based projects. Contact the editor at editor.opinions@blockpublisher.com

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