Not all hope is lost for those looking SEC-approved Bitcoin ETF licenses. Commissioner Hestor Peirce revealed that the SEC was going to review its recent decisions to reject nine Bitcoin ETF proposals (from ProShares, Direxion and GraniteShares), according to CryptoGlobe. Brent Fields, the SEC Secretary, sent a letter to David De Gregorio, Senior Counsel for NYSE Group, indiciating that the letter
“[was] to notify…that, pursuant to Rule 43 1 of the Commission’s Rules of Practice, 17 CFR 201.431, the Commission will review the delegated action. In accordance with Rule 43 1 (e), the August 22 order is stayed until the Commission orders otherwise.”
The main reasons for why the Bitcoin ETF license were not issued are attributed to the bitcoin futures market, rather than the funds the hold bitcoin directly, according to Coindesk. The agency noted that the current bitcoin futures trading volumes on CBOE Futures Exchange and CME cannot support ETPs seeking 100% long or short exposure to bitcoin. The SEC reinforced its stance that the bitcoin market as a whole faced inadequate resistance to price manipulation. After the decisions to reject the recent Bitcoin ETFs, Commissioner Peirce ordered a review of the decisions.
It only takes one Commissioner to ask for a review of a staff decision and stay the ruling. After their review is complete, it would take a majority of the Commission to overturn the staff decision.
— Michael Piwowar (@MichaelPiwowar) August 23, 2018
Acting as the lone dissentor earlier last month after the SEC rejected the Winklevoss twins’ request for an ETF license, Commissioner Peirce certainly holds her stance in calling for more constructive regulation for the bitcoin market. For Bitcoin enthusiasts, the battle is lost, but not the war. Come mid-September, the SEC will reveal its decision to potentially issue a bitcoin ETF license to the investment firm VanEck and financial services company SolidX, to trade on CBOE.