FxWirePro: Is it BATS or NYSC? Bitcoin hedge fund’s ball in SEC’s court on approval commotion

More than three years ago, Winklevoss Capital Management LLC, launched the Winklevoss Investment Trust, the first proposed bitcoin ETF. Consequently, as a matter of regulatory framework, the trust had filed to trade on the BATS exchange rather than on the New York Stock Exchange (NYSE) in last June of 2016. The SEC is now expected to make a decision on it by March.

While the SEC is expected to approve a bitcoin hedge fund anytime soon but not sooner than March, in light of how long it has taken the agency to act on the Winklevoss ETF and other factors, including China’s dominance of bitcoin trading. We think the deferment in obtaining a bitcoin ETF approved would make cryptocurrency volatile, which could be good since it’s an asset traders are looking for given the lack of volatility in other assets.

More Bitcoin ETFs are in shrewd hunt for the approval from the US regulatory body (SEC) to protect investors, maintain fair, orderly, and efficient markets, and facilitate the capital formation. While in the recent forum hosted by the SEC, the panels discussed issues such as blockchain technology, automated investment advice or robo-advisors, online marketplace lending and crowdfunding, and how they may impact investors.

On the other corner, a few set of analysts foresees Bitcoin ETFs may not be on the cards in the near future. However, such group perceives the prospect of cryptocurrencies, the "pursuit has sought after” as becoming the first to have a bitcoin ETF approved by the SEC.

The companies like the Winklevoss twins, Cameron and Tyler, Winklevoss Capital Management LLC, over three years ago, tossed the first proposed bitcoin ETF, the Winklevoss Investment Trust, looking to trade on the HFT-dominated BATS exchange. The SEC is expected to make a decision on it by March. A second group, SolidX Partners followed last July seeking SEC approval for its bitcoin ETF, SolidX Bitcoin Trust, which also would be listed on the NYSE.

Well, for now, SEC seems to have deferred the Winklevoss ETF proposal, the moment Cameron and Tyler Winklevoss to obtain an ultimate pronouncement from the SEC on their long-proposed bitcoin exchange-traded fund (ETF), Trump’s policies could also likely to effect on cryptocurrency market’s volatility.

Although an earlier 10th January deadline would have placed the decision by the SEC to approve or disapprove the Winklevoss brothers' request, paperwork filed now extends the deadline to 11th March.