The U.S. Securities and Exchange Commission will revisit its rejection of a Bitcoin exchange-traded fund (ETF) proposal. The SEC rejected the most recent proposal from Bitwise ETF and NYSE Arca on October 9th, citing concerns about market manipulation and risks to investors.
The review process once again opens the proposal to public comments about the Bitwise Bitcoin ETF.
“Accordingly, it is ordered, pursuant to Commission Rule of Practice 431, that by December 18, 2019, any party or other person may file a statement in support of, or in opposition to, the action made pursuant to delegated authority.
It is further ordered that the order disapproving proposed rule change SR-NYSEArca-2019-01 shall remain in effect pending the Commission’s review.”
The SEC has yet to approve a Bitcoin ETF.
Since the Commission’s October rejection, institutional investors are showing increasing interest in products that offer exposure to Bitcoin.
Bakkt, the regulated Bitcoin futures trading platform that is owned and operated by Intercontinental Exchange, reveals sustained interest after a slow start. Once its daily trading volume surged on October 23rd, three subsequent days broke trading records and set new all-time highs.
Binance, a major player in the crypto space, has launched Binance.US, a regulated cryptocurrency exchange for US residents. Early results show 24-hour trading volume topped $15 million by the end of October. Incentives to spark consumer confidence included the announcement of FDIC insurance coverage of up to $250,000 for all US depositors.
On November 16, Binance.US CEO Catherine Coley announced $759 million in trades by day 50.
While crypto enthusiasts have called out the SEC for taking too long to approve a Bitcoin ETF, Thomas Lee, co-founder of Fundstrat Global Advisors and a long-term Bitcoin bull, disagrees.
“Might be an unpopular opinion, but we believe the SEC is doing its job pretty well.”
Lee says the $200-billion crypto market is too small and that Bitcoin will need to hit $150,000 in price before it can sustain an ETF.