On Wednesday the SEC rejected nine ETF applications including the ProShares Bitcoin ETF. The applications had been submitted by ProShares, Direxion, and GraniteShares with the decision on the ProShares ETF being due by yesterday at the latest. SEC Commissioner, Hester Peirce, took to Twitter yesterday to announce that the ETF decisions would be reviewed.
The official correspondence from the SEC secretary, Brent Fields, to David De Gregorio of the NYSE included the following text regarding the ProSharesBitcoin ETF and the ProShares Short Bitcoin ETF:
“This letter is to notify you that, pursuant to Rule 43 I of the Commission’s Rules of Practice, 17 CFR 20 I .43 1, the Commission will review the delegated action. In accordance with Rule 431 (e), the August 22 order is stayed until the Commission orders otherwise.”
From the information currently available, there is no suggestion that any of the decisions will be reversed, and the indication is that there was a problem with the way the announcements on the ETF decisions were made. It may be the precise timing, or the amalgamation of nine ETF decisions was an issue for the SEC.
Hester Peirce disagrees with the other SEC Commissioners
Peirce has previously voiced her concerns about earlier ETF decisions and that she disagrees with the views of the other Commissioners. She recently told CNBC’s Ran Neuner that there is “no reason to not allow” a bitcoin ETF approval.
The latest Tweet posted by Hester Peirce will be considered by some as a further dig at the other Commissioners as the announcement didn’t come through the official SEC social media channel. In fairness to Peirce, her Twitter profile clearly states:
“My tweets are my own and may not reflect the views of the SEC or any other SEC Commissioner.“
Financial analyst, smartphone app designer, technical writer, and crypto enthusiast. Blockchain verified graduate of MOOC 9, DFIN-511: Introduction to Digital Currencies, run by the University of Nicosia.