The Securities and Exchange Commission (SEC) has denied a bid to list a bitcoin exchange-traded fund on the New York Stock Exchange.
The decision, published today, presents the second bitcoin-tied ETF turned down by the SEC since the start of the month. On 10th March, the agency rejected an effort from investors Cameron and Tyler Winklevoss to list a bitcoin ETF on the Bats BZX Exchange – though last week Bats moved to fight that rebuffing, seeking an effective rehearing of the SEC’s decision.
In its notice, the SEC cited justifications similar to those used in the Winklevoss ETF decision, namely a lack of market surveillance and a dearth of regulation in some jurisdictions.
The SEC wrote:
"The Commission believes that, in order to meet this standard, an exchange that lists and trades shares of commodity-trust exchange-traded products ("ETPs") must, in addition to other applicable requirements, satisfy two requirements that are dispositive in this matter. First, the exchange must have surveillance-sharing agreements with significant markets for trading the underlying commodity or derivatives on that commodity. And second, those markets must be regulated."
The agency had earlier moved to delay its decision in September, punting a final determination until the end of this week at the latest. While representatives for the SEC did not immediately respond to a request for comment, some kind of decision (or another delay) was anticipated by Friday.
The full decision can be found below:
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