Bats BZX Exchange has filed a petition to review a decision by the SEC to reject a bitcoin investment vehicle proposed by investors Cameron and Tyler Winklevoss.
Filed on 17th March, the move is the first public attempt by an entity involved in the Winkelvoss Bitcoin Trust effort to push for a review of its 10th March rejection, a decision that followed three years of filings in an attempt to launch the product.
If approved, the Winkelvoss Bitcoin Trust would have been the first exchange-traded fund to offer exposure to the digital currency to retail investors. It would have listed on the Bats BZX Exchange, one of the largest US equities markets.
At the time, the SEC found that bitcoin's market was perhaps too immature to support such a product, citing a lack of regulation and the potential risk for fraud.
Notably, the petition was filed under rule 430(b)(1) of the SEC's Rules of practice.
According to the SEC’s website, Rule 430(b)(1) enables parties to file a notice of petition within five days of the ruling (or within 15 days of its publishing in the Federal Registrar), provided clear reasons for the petition are given.
The rule goes on to state that the SEC, under this clause, may "affirm, reverse, modify, set aside or remand" the prior contested action as part of the review.
As noted in the filing, Bats is now gearing up to file additional documents.
The statement reads:
"Bats intends to file separately a petition for review in accordance with Rule 430(b)(2) of the Securities and Exchange Commission’s Rules of practice."
At this time, it's unclear of how the objection might be received, or what the path forward may be for the proposed investment product, though the SEC may also decline the request for review.
Representatives for Bats were unable to be reached for comment.
Read the full statement here.
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