Date
23 September 2018
Proposals for derivative-backed bitcoin exchange-traded funds are said to have prompted worries among SEC officials about the risk of market manipulation and fraud. Photo: Bloomberg
Proposals for derivative-backed bitcoin exchange-traded funds are said to have prompted worries among SEC officials about the risk of market manipulation and fraud. Photo: Bloomberg

US regulator to review decision rejecting bitcoin ETFs

The US Securities and Exchange Commission said on Thursday that it will review a decision by its staff to block nine bitcoin-based exchange-traded funds from coming to market, Reuters reports.

Staff at the SEC had earlier this week rejected applications for new funds from three companies, suggesting they were not yet convinced that the products would not be subject to fraud or manipulation.

But the SEC’s four commissioners will review those decisions, Reuters said, citing letters the SEC posted on its website.

SEC staff have delegated authority to make a decision on such applications, meaning the commissioners and the SEC chairman have the power to review the decision if they desire.

The commissioners had previously voted 3-1 to reject another bitcoin ETF application, with Republican commissioner Hester Peirce dissenting on the basis she felt doing so stifled innovation.

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RC

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