SEC Orders Review of Winklevoss Bitcoin ETF Rejection

The SEC will review its decision to reject a bitcoin exchange-traded fund proposed by investors Cameron and Tyler Winklevoss.

AccessTimeIconApr 25, 2017 at 4:30 p.m. UTC
Updated Sep 11, 2021 at 1:16 p.m. UTC

The SEC intends to review its decision to reject a bitcoin exchange-traded fund proposed by investors Cameron and Tyler Winklevoss.

As previously reported by CoinDesk, the SEC shot down a bid by the Winklevoss brothers to get the ETF listed on the Bats BZX exchange in March. Specifically, the agency declined a rule change proposed by Bats that would have cleared the path for the ETF, citing a lack of market surveillance and regulation.

Less than two weeks after the decision was handed down, Bats petitioned for a review – a move that the agency has now greenlit.

The SEC said yesterday that it had approved the review, opening the door to further comment between now and 15th May.

The agency said:

"Pursuant to Rule 431 of the Rules of Practice,11 BZX's petition for review of the Disapproval Order is granted. Further, the Commission hereby establishes that any party to the action or other person may file a written statement in support of or in opposition to the Disapproval Order on or before May 15, 2017."

The news comes weeks after the SEC rejected another bitcoin-tied ETF, proposed by SolidX, that would have listed on the NYSE Arca exchange if approved. At the time, the price of bitcoin set new all-time highs – even passing the price of gold – amid speculation about the investment vehicle.

The decision further flies in the face of popular commentary, as analysts polled by CoinDesk initially saw an uphill road for an attempts to reinstate the proposal.

A representative for Winklevoss Capital did not immediately respond to a request for comment.

The full order can be found below:

34-80511 by CoinDesk on Scribd

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Three Arrows Paper Trail Leads to Trading Desk Obscured Via Offshore Entities

As Three Arrows Capital collapsed under market pressure, its much-lesser known trading desk, TPS Capital, remained active, sources say. But a complex ownership structure might frustrate creditors' efforts to collect.

CoinDesk - Unknown
2
CoinDesk - Unknown
June Was Bitcoin’s Worst Month Ever

Plus, European crypto regulation comes into view.

CoinDesk - Unknown
3
CoinDesk - Unknown
What Traders Are Saying About Bitcoin's Biggest Monthly Loss in 11 Years

Poor macroeconomic sentiment, fears of inflation and systemic risks from the crypto market pushed the cryptocurrency below 2017’s highs.

CoinDesk - Unknown
4
CoinDesk - Unknown
Three Arrows Capital Files for Bankruptcy in New York Tied to British Virgin Islands Proceeding

A British Virgin Islands court ordered Three Arrows' BVI branch into liquidation earlier this week.

CoinDesk - Unknown