The U.S. Securities and Exchange Commission (SEC) is taking a second look at the rejection of a recent bitcoin exchange-traded fund (ETF) proposal.
Bitwise did not request the review, said Matt Hougan, the company’s global head of research.
“We do, however, welcome the opportunity to submit comments and continue the dialogue with the SEC,” he said in an email.
The order rejecting the proposal will remain in effect until the review has concluded, the notice said, with the commissioners either upholding the staff rejection or overturning it. As part of the review, the general public can comment on the rejection through Dec. 18, 2019.
Unlike the SEC’s formal approval or disapproval process, there are no set deadlines for the review of a decision. The Commission has previously reviewed the rejection of a bitcoin ETF proposal filed by the family office of Tyler and Cameron Winklevoss, ultimately upholding the decision after more than a year.
It is possible that an SEC commissioner may have called for the Bitwise review.
Famously, Commissioner Hester Peirce – dubbed “Crypto Mom” by the community – announced the review of nine rejected bitcoin ETF applications in 2018. Peirce also dissented from the SEC’s second rejection of the Winklevoss ETF.
Neither Peirce nor an SEC spokesperson immediately responded to emailed requests for comment. ProShares declined to comment, and a request for comment to Direxion was not returned by press time.
GraniteShares CEO Will Rhind told CoinDesk in a phone call that nothing had come of the SEC’s review so far, and he did not expect this to change in the near future.
“I think [SEC Chairman Jay Clayton] has spoken publicly about the ETF applications and … he’s made it clear at least from the top that the market has to mature a little bit before there’ll be an approval,” he said.
Matthew Hougan image by Joe Jenkins for CoinDesk
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