‘Innovation Is Unwelcome’
She also argued that, by rejecting the bitcoin ETF proposal, the SEC was stunting growth in the overall cryptocurrency market, thereby reinforcing the lack of investor protections to which the Commission objected in the first place.
"More institutional participation would ameliorate many of the Commission’s concerns with the bitcoin market that underlie its disapproval order," she wrote.
"More generally, the Commission’s interpretation and application of the statutory standard sends a strong signal that innovation is unwelcome in our markets, a signal that may have effects far beyond the fate of bitcoin ETPs," she continued.
Other Bitcoin ETPs Remain
Several other applications for bitcoin ETFs remain pending before the SEC, including the VanEck SolidX Bitcoin Trust, another physical bitcoin ETF proposal filed in June (read: "VanEck, Solid X Team Up On Bitcoin ETF").
VanEck's proposal contains several features that COIN did not, including insurance held by the trust against the loss or theft of bitcoins, and an initial price per share of $200,000, such that only certain institutions would be able to purchase shares.
It is unclear whether those changes will be enough to prevent VanEck's fund from meeting the same fate as COIN, however.
This week, the SEC delayed deliberations on five additional futures-based leveraged bitcoin ETF filings from Direxion.
Meanwhile, Bitwise Asset Management filed for an index fund that would track the performance of a basket of the 10 largest cryptocurrencies, including bitcoin (read: "1st Crypto Index ETF Filed").
Contact Lara at [email protected]