The U.S. Securities and Exchange Commission (SEC) will review its decision to reject nine applications to list and trade various Bitcoin (BTC) exchange-traded funds (ETFs), according to three different letters the SEC posted on its website.
The Commission on August 22, 2018 disapproved a total of nine Bitcoin ETF proposals from three different entities - - ProShares, Direxion, and GraniteShares, claiming that the products did not comply with the requirements by the “Exchange Act Section 6(b)(5), in particular the requirement that a national securities exchange's rules be designed to prevent fraudulent and manipulative acts and practices."
The U.S. SEC secretary Brent Fields wrote in a letter addressed to NYSE Group senior counsel David De Gregorio:
"This letter is to notify you that, pursuant to Rule 43 I of the Commission's Rules of Practice, 17 CFR 20 I .43 1, the Commission will review the delegated action. In accordance with Rule 431 (e), the August 22 order is stayed until the Commission orders otherwise."
"The Office of the Secretary will notify you of any pertinent action taken by the Commission," Fields added. Similar language was used in two others letters, including another sent to NYSE Group and Cboe Global Markets.
Also read: The Impact of SEC Decisions on Bitcoin ETFs: Strong Bullish or Bearish Crypto Trends
Earlier this month, the Commission postponed its decision on the listing and trading of a VanEck-SolidX Bitcoin ETF until September 30. While in July, the Commission for the second time rejected the application for a Bitcoin ETF by twin brothers Tyler and Cameron Winklevoss, founders of crypto exchange Gemini. However, one SEC Commissioner named Hester M. Peirce officially dissented the SEC's decision.
Also read: Basics of Bitcoin ETF