The Commission on securities and exchange Commission (SEC) rejected the request to open a Bitcoin ETF and ProShares ProShares Short Bitcoin ETF — focused bitcoin exchange-traded investment funds.
Simultaneously, a similar fate was waiting for some more bids to launch a bitcoin ETF, Direxion filed by companies and GraniteShares.
The application to launch Bitcoin ETF and ProShares ProShares Short ETF Bitcoin was together with NYSE Arca, but, according to the SEC proposed changes to the rules of the exchanges can not be accepted.
As noted in the official reply of the Commission, the exchange failed to demonstrate that its proposal meets the requirements of section 6(b)(5) of the exchange Act, in particular regarding the requirements for the prevention of manipulation in the market.
Separately, the SEC drew attention to the fact that its solution does not depend on the assessment as to whether the value of bitcoin as an innovation or investment.
Almost the same arguments, the Commission cited in justifying his decision to refuse the launch of five bitcoin ETF, applications for the launch of which was previously filed by the company Direxion, the two funds GraniteShares. In applications it describes the tools directly tied to the exchange rate of bitcoin and other cryptocurrencies.
The first application to launch exchange-traded funds ProShares filed in September 2017, but later withdrew it. The new application was filed in December of the same year, and this spring it became known that the SEC began addressing them.
It is worth noting that to date, the us financial regulator only rejected or postponed applications launch a bitcoin ETF. For example, in July, was a second time rejected the request of the brothers Cameron and Tyler Winklevoss to the opening is bound to a bitcoin exchange-traded Fund Global BATS Exchange (BZX). In early August, the SEC extended until 30 September the deadline for a decision to launch a bitcoin ETF filed jointly by the new York companies VanEck and SolidX.
According to many, the bitcoin ETF will significantly enliven the market due to the influx of institutional money, recently, however, bitcoin Evangelist Andreas Antonopoulos expressed the view that such funds may trigger a wave of manipulation in the cryptocurrency market.
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