Bitcoin: SEC changed idea, is going to review ETF’s decision

The U.S. Securities and Exchange Commission (SEC) has decided to place a stay on three orders that rejected Bitcoin exchange-traded funds (ETFs) seeking to be listed on the NYSE Arca and other regulated exchanges. Initially, the SEC denied each of the derivative backed Bitcoin ETFs over genuine concerns of manipulation, as well as Bitcoins availability on numerous unregulated exchanges. In fact, some have gone as far as suggesting that Bitcoin’s recent 1 minute $300 dollar leap that coincided with BitMEX going offline for ‘maintenance’ is a validation of the SEC’s apprehension to approve a Bitcoin-based ETF.

Surprisingly, after making yesterday’s denial announcement ahead of schedule, the SEC has now decided to review these orders, which were originally drafted by staff members on behalf of agency leadership.

In fact, SEC Commissioner Hester Peirce tweeted, “Yesterday’s staff orders disapproving SRO rules related to a number of bitcoin ETFs are stayed pending Commission review.” and She then followed with an additional tweet explaining the previous one in plain English.

Peirce — who criticized the agency’s recent disapproval of a Winklevoss-backed bitcoin ETF — posted a copy of a letter, sent by the agency and addressed to NYSE, attesting to the fact that the chairman and commissioners will personally review the applications to determine whether SEC staff ruled appropriately.

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.

The virtual currency can be used to move money around the world quickly and with relative anonymity, without the need for a central authority, such as a bank or government. A fund holding the currency could attract more investors and push its price higher.