Would-be bitcoin ETF investors are in wait-and-see mode as the Securities and Exchange Commission reconsiders whether to allow the first bitcoin exchange-traded fund to come to fruition. To the dismay of many, the SEC rejected the Winklevoss Bitcoin ETF (COIN) in a March 10 decision, citing a lack of regulation and surveillance-sharing agreements between exchanges.
Bats Global Markets, operator of the exchange on which the ETF would trade and which is owned by the same parent company — CBOE — as ETF.com, responded to the SEC's verdict by filing a "petition for review" of the disapproval on March 24.
Bats argued that the commission's initial conclusion "is clearly erroneous," "inconsistent with prior ETP [exchange-traded products] approval orders" and that "the manipulation concerns ... are overstated and largely theoretical."
Bats urged the SEC to approve its proposed rule change, which would open the door to the listing of the ETF and "provide investors access to bitcoin through a regulated and transparent investment vehicle."
On April 24 the SEC agreed to consider Bats' petition for review and asked for public comments on the original disapproval order. The last of those comments was submitted on May 15, setting the stage for a new round of deliberations by the commission.