Daily Management Review

Rejected Bitcoin-Based ETF Application To Be Reviewed By SEC


08/27/2018


A failure to convince the SEC of assured fraud free product resulted in an application rejection while the decision is under review.



The “U.S. Securities and Exchange Commission” had informed that it is going to re-assess a decision that was taken by its staff of blocking the market entry of “nine bitcoin-based exchange-traded funds”.
 
Last week, on Wednesday, the SEC had declined to approve application for “new funds from three companies”, whereby it was suggested that the proposals failed to convince the SEC that products offered will not be manipulated or made “subject to fraud”. However, SEC’s website featured letters which informs that four commissioners of SEC are going to “review those decisions”.
 
Moreover, the staff of SEC have “delegated authority” to take any decision on the applications like these, which means that it is in the power of the commissioners as well as the chairman of SEC to review any desired decision. However, Reuters informed:
“The commissioners had previously voted 3-1 to reject another bitcoin ETF application, with Republican commissioner Hester Peirce dissenting on the basis she felt doing so stifled innovation”.
 
Thanks to the virtual currency, one can experience faster fund transaction across the globe while guarding “relative anonymity” and bypassing the requirement for a central authority like the government or a bank. In case, a fund holds the currency, it could be a reason for attracting “more investors”, whereby pushing up its value.
 
 
References:
reuters.com







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