The United States Securities and Exchange Commission (SEC) has been on a streak of questionable decisions these past few months. Recently there were talks that the regulator was accepting applications on Bitcoin ETF hostings.
Naturally, there were a couple of applicants but the very first one was Reality Shares, a California-based investment company. In all honesty, Reality Shares was the first company to ever sell Blockchain ETFs but they needed to apply for a license regardless.
The SEC decided to request the company to withdraw the application, however, they haven’t denied it. If the application went through then the hosting will be the responsibility of NYSE Acra, an exchange owned by ICE (Intercontinental Exchange).
SEC takes a break
As already mentioned the SEC had stated in the past that they were going to start implementing all of the Bitcoin ETF listings and were prepared for the applications. However, the regulator has not approved even a single application, stating that there were no contracts included, therefore the applications were hollow at best. The topic is still being discussed as we speak, as the SEC is advising caution, while the companies are urging them forward as the price of cryptocurrencies is not something to rely on. Even after the fact that Bitcoin Futures were displayed on Cboe and CME, the SEC is still not trusting the digital assets enough to give them full economic freedom.
This is not the first major denial of Bitcoin ETF listings, however. In the past, the regulator had also denied the Winklevoss Twins, who were arguably the most trustworthy of the companies that applied. All of this seems like a power move from the SEC, stating that unless it is 101% sure that digital assets are safe, it will not use it as an underlying asset in a regulated investment platform.