Serving the US as the governing body for the securities market, the U.S. SEC has taken a bold step of reconsidering its decision to reject a Bitcoin exchange-traded fund or ETF proposal made by Bitwise ETF and NYSE Arca. The proposal was turned down by the regulatory authority on October 9, 2019.
The reasons given by the SEC for the rejection of the proposal included its concern for ill practices like market manipulation and imposition of risk to the investors post the acceptance of the ETF proposal. The reports concerning the matter suggest that SEC’s decision to revisit its decision is unanimously at its own discretion. A notice dated November 18, 2019, was issued by the five commissioners in the Federal Register, following the rejection order given in October.
The notice read,
“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.”
There has been a substantial increase in the interest concerns of institutional investors towards the revolutionary solutions that render more exposure to Bitcoin, specifically after the Commission’s October rejection order.
Owned and managed by Intercontinental Exchange, Bakkt has established itself as a world-class Bitcoin Futures trading platform. Though the platform had to face a slow start in its opening phase, the recent surging figures have been quite impressive. On October 23, 2019, Bakkt enjoyed an increase in its daily trading volume. Also, the platform broke all trading records in the next three subsequent days setting new high-time results.
While some crypto freaks have shown their unhappiness towards SEC’s delayed take on giving approval for a Bitcoin ETF, Thomas Lee, co-founder of Fundstrat Global Advisors, shared his disagreement stating that “Might be an unpopular opinion, but we believe the SEC is doing its job pretty well.”
The leader stated that the Bitcoin would require to reach $150,000 in price before it achieves the potential to sustain an ETF.