In what is seen to be surprising news for the cryptocurrency community, the U.S. Securities and Exchange Commission (SEC) has decided to review its decision to reject all 9 Bitcoin ETFs.
On Wednesday, the SEC made a decision to crash 9 Bitcoin exchange-traded funds (ETFs) applications made by GraniteShares, Direxion, and ProShares over concerns of market manipulation, as well as Bitcoin availability on many unregulated exchanges.
Surprisingly, a day after the disappointing announcement was made; the SEC has now decided to take another look at the Bitcoin ETF applications. In a copy of the letter addressed to the New York Stock Exchange (NYSE), the commission, through its secretary Brent J. Fields, explained that the applications will be carefully reviewed again to identify if the ruling by the SEC staff was fairly done. This means that the order previously made on Wednesday remains until the commission makes a new ruling. The letter stated that:
This letter is to notify you that, pursuant to Rule 43 1 of the Commission’s Rules of Practice, 17 CFR 201.431, the Commission will review the delegated action. In accordance with Rule 43 1 (e), the August 22 order is stayed until the Commission orders otherwise. The Office of the Secretary will notify you of any pertinent action taken by the Commission
The commission however didn’t release a timetable explaining the duration it expects to review the recent rejections, only stating that:
The Office of the Secretary will notify you of any pertinent action taken by the Commission.
SEC Commissioner Hester Pierce took it to twitter, explaining that the decision by the commission to disapprove the Bitcoin EFTs will stay pending review. She then wrote another tweet explaining the previous ruling in simple terms.
In English: the Commission (Chairman and Commissioners) delegates some tasks to its staff. When the staff acts in such cases, it acts on behalf of the Commission. The Commission may review the staff's action, as will now happen here.
— Hester Peirce (@HesterPeirce) August 23, 2018
Renewed hope for the Cryptocurrency community?
The decision by SEC to review all the Bitcoin ETFs it had denied on Wednesday gives the cryptocurrency community some hope that their verdict this time will be positive. Following the earlier application disapproval, Bitcoin price dropped around £233 ($300) within a few hours, clearly showing the disappointment investors suffered, though it has since recovered and is now trading at around £5,100 (or $6,500) at the time of writing.
By reviewing the orders, investors remain optimistic that at least one of the ETF applications will be approved. If that were to happen, the crypto market would see new money from institutional investors, propelling Bitcoin, Ethereum, Litecoin, and other top altcoin prices to new highs.