SEC Orders Review of Winklevoss Bitcoin ETF Rejection

Stan Higgins
Apr 25, 2017 at 17:30 UTC
NEWS

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

Image via Techcrunch Disrupt, by Max Morse for Techrunch

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