The USA Securities and Exchange Commission (SEC) has issued rejections to bitcoin exchange-traded fund (ETFs) proposals from ProShares, Direxion and GraniteShares.
In 3 orders published on August 22, the rejections came ahead of previously reported deadlines arising from the SEC’s public-facing approval process.
The SEC used the exact same reasoning – and wording – in all of its rejections.
“…the Commission is disapproving this proposed rule change because, as discussed below, the Exchange has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6(b)(5), in particular the requirement that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices”, – the agency wrote in case of ProShares.
“…the Commission is disapproving this proposed rule change because, as discussed below, the Exchange has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6(b)(5), in particular the requirement that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices”, – was written in case of Direxion’s five proposed ETFs.
The SEC stressed that “its disapproval does not rest on an evaluation of whether bitcoin, or blockchain technology more generally, has utility or value as an innovation or an investment.”
Similar language was also used in the GraniteShares rejection as well.
One commissioner, Hester Peirce, dissented that decision, later telling CoinDesk in an interview that the move to block a bitcoin ETF is a disservice to both investors and innovators.
On August 7, the SEC delayed CBOE VanEck / SolidX Bitcoin-ETF decision until September 30, while at the end of July the Winklevoss Bitcoin ETF was rejected by the SEC.
The crypto market falls amid the SEC rejections on Bitcoin ETFs. Bitcoin is trading at $6 450,20 (-3,84%), other cryptocurrencies have fallen too. Total market capitalization is $208 208 345 616 at press time.
