The US SEC plans to reevaluate its decision to reject nine exchange-traded funds (ETFs) applications to trade and list Bitcoin (BTC). The SEC announced the rejection of these applications on the 23rd of August.
SEC Rejects Nine Bitcoin (BTC) ETF Application on August 23
On 23 August, the U.S Securities and Exchange Commission rejected a total of nine ETF applications for Bitcoin (BTC) from three different firms. The SEC said that the products didn’t comply with the “Exchange Act Section 6(b)(5)’ requirements, especially the requirement that the rules of a national securities exchange must be designed to prevent manipulative and fraudulent practices and acts.
SEC Intends to Review Its Decision
Right after the SEC rejected the ETFs, the agency released a letter revealing that they want to review their decision, and they have assigned authority to take action on the applications. Nevertheless, the agency did not disclose what the review will entail as well as the deadline for the decision.
Exchange-traded funds are tradable securities that track a commodity, index, or basket of assets, which are proportionally represented in the share of the fund. Exchange-traded funds see changes in their value all through the day as they are sold and bought on a stock exchange.
If the U.S SEC approves an ETF for Bitcoin (BTC), a fund would buy an underlying amount of Bitcoin (BTC) and disperse those funds into shares, which will be further dispersed to shareholders. In July, the US SEC rejected a Bitcoin (BTC) ETF application filed by the Winklevoss twins, after rejecting its first application in March last year due to the “nature of Bitcoin (BTC) markets that are highly unregulated.”
Bitcoin (BTC) Price Today – BTC / USD
The current value of Bitcoin (BTC) is $6,530 after an increase of about 2 percent over the past twenty-four hours. The current market of the digital currency is $112.50 billion and its trading volume over the past twenty-four hours is $3.34 billion.