SEC asks for more time to approve listing Winklevoss Bitcoin Shares

The Securities & Exchange Commission (SEC) today put out a notice informing BATS Global Markets that it needs more time to determine whether to approve a proposed rule change for Commodity-Based Trust Shares in order to list Winklevoss Bitcoin Shares ETF Issued by the Winklevoss Bitcoin Trust.

The Winklevoss Bitcoin Trust was founded by Tyler and Cameron Winklevoss to provide investors exposure to bitcoin. The brothers are also owners of U.S. regulated cryptocurrency exchange Gemini, incorporated as Gemini Trust Company, LLC.

Prior to this potential offering, there has been no public market in the US for bitcoin-based funds. The ETF will be listed and trade on Bats BZX Exchange, Inc. (BATS) under the symbol COIN.

Kyle Murray, Assistant General Counsel of Bats Global Markets made the following comments to the SEC:

First, Bats would like to acknowledge the thoughtfulness of many of the letters submitted by members of the public during the comment periods and believe that such extensive feedback demonstrates the public’s interest in investment vehicles which allow exposure to digital assets in general and the importance of judicious and transparent guidance and rulemaking by the Commission on this nascent asset class. Bats believes that the Trust, which is sponsored by Digital Asset Services, LLC (the “Sponsor”), represents a robust and carefully designed implementation of an investment vehicle suitable for listing and trading on the Exchange.

The delay stems from various issues, such as lack of regulation of bitcoin exchange markets, lack of surveillance, and concerns regarding liquidity and manipulation which you can read more about in the public comment section on the SEC website.

You can read the Winklevoss Bitcoin Trust registration statement here.