“The reasons for disapproval appear unrelated to specifics of the Winklevoss filing and therefore this announcement is a negative indicator for the prospects of the other bitcoin ETFs,” he said.
Hannah Randall, a spokeswoman for Bats, said the exchange is reviewing the ruling and declined to comment further. The decision by the SEC was made by the Trading and Markets Division staff, according to the filing. Agency staff has so-called delegated authority to effectively approve new ETFs without a vote by commissioners.
“The Commission notes that bitcoin is still in the relatively early stages of its development and that, over time, regulated bitcoin-related markets of significant size may develop,” the agency’s staff said in its decision. “Should such markets develop, the Commission could consider whether a bitcoin ETP would, based on the facts and circumstances then presented, be consistent with the requirements of the Exchange Act.”
This article was provided by Bloomberg News.