The BATS Global Markets exchange has indicated that it will formally object to the Securities and Exchange Commission’s recent denial of the Winklevoss Bitcoin Trust. The exchange has announced its intention to appeal the decision by requesting that the commission reconsider the proposal. BATS had intended to become the first exchange to list the new ETF if the SEC had approved the Winklevoss proposal.
It appears unlikely that any reversal of the SEC denial will be forthcoming. According to reports in the Wall Street Journal, there may not even be any formal mechanisms in place to force the commission to give the matter a second look. And the SEC’s commissioners may not be willing to take up the petition, given that three of the commission's five seats are currently vacant.
More importantly, the SEC’s stated reasons for denying the ETF proposal continue to be just as relevant as they were earlier this month. The initial decision cited a lack of regulations for digital currency, and the commission’s concerns that the decentralized nature of Bitcoin would make it difficult for the SEC to properly protect investors. If the SEC commissioners choose to stand by those concerns, the prior denial is likely to stand as well.