Bitcoin Investment Trust's Exchange-Listing Hopes Put on HoldBy
NYSE Arca, the largest U.S. listing venue for ETFs, drops plan
Grayscale says SEC was unlikely to approve application
It may take a while longer for bitcoin to gain mainstream acceptance.
Grayscale Investments’ Bitcoin Investment Trust, which trades over-the-counter and is the lone vehicle available to institutional investors, is unlikely to list on the NYSE Arca market after the exchange withdrew an application to the U.S. Securities and Exchange Commission for approval amid regulatory uncertainty.
"Grayscale has been closely monitoring regulatory developments in these markets, and although digital currency market regulation continues to rapidly evolve, at this time Grayscale does not believe there have been enough regulatory developments to prompt the SEC to approve the Rule 19b‑4 application for the Bitcoin Investment Trust," the trust’s sponsor said in a statement.
Greyscale noted that the SEC turned down two applications for similar virtual currency products earlier this year, and said it plans to keep in touch with the regulator so it can move forward with an exchange listing "when conditions permit."
Shares of the Bitcoin Investment Trust have surged almost 500 percent this year.