It looks like the bitcoin community can still hope to see a Bitcoin ETF on a major exchange in the near future. Albeit the SEC rejected this proposal back in march of 2017, the Bats exchange filed a petition for review, which has been granted. This is an interesting development, to say the least, and one that may change the future of bitcoin altogether.
SEC Will Review Winklevoss Bitcoin ETF Proposal
It is safe to say a lot of people were disappointed when the SEC rejected the Winklevoss Bitcoin ETF proposal a few weeks ago. There was a lot of excitement surrounding the decision before it was made public, yet things did not work out in the end. However, the Bats exchange, which will list the Bitcoin ETF, is not ready to give up just yet. In fact, they filed a petition for review of the SEC’s initial decision.
What this means is how everyone can weigh in on the concept of a Bitcoin ETF rule change proposal until May 15th. Written statements can be sent to either support or oppose the Bitcoin ETF proposal altogether. Do keep in mind the final decision still lies with the SEC. The proposal was initially rejected due to a lack of regulation for bitcoin, and very little has changed since that time.
At the same time, the SEC could have rejected the petition to review the initial verdict. For some reason, they did not do so, which may indicate there is still a chance of them overturning the initial ruling. If that were to happen, the SEC will effectively legitimize bitcoin as a product for institutional investors. Moreover, this could have a significant impact on the overall Bitcoin market cap, which currently sits around the US$20.8bn mark.
That being said, everyone can appeal a decision by the SEC, regardless of whether it is positive or negative. What the Bats exchange is doing is not as unusual as some people may think. Having a review petition approved does not necessarily increase future approval chances either, though. Either way, it is an intriguing development for people who still have high hopes for a Bitcoin ETF, even though it won’t mean much if the final verdict remains the same in the end.
There have been a few incidents in which an initial SEC decision has been overturned, although they are far more of an exception than a rule. The only way to successfully achieve such a feat would come in the form of producing new facts to overcome initial objections. In the ETF industry, there has seemingly been no record of a rejection being overturned by the SEC to date. Trends are designed to be broken, but the Bitcoin ETF will have a very steep road ahead, to say the least.
At this point in time, it is highly unlikely the SEC will change its mind Then again, we won’t know for sure until they publicly issue the new verdict after May 15th. Depending on what information is collected between now and then, things may turn around for the bitcoin ETF after all. For now, there is reason for reserved optimism, but no one should get ahead of themselves until the new verdict is in.
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