The Commission on securities and exchange Commission (SEC) rejected seven applications to run bitcoin investment exchange-traded funds (ETFs). This time the refusal was ProShares, Direxion (the exchange has filed five sets of documents) and GraniteShares. CoinDesk writes, the corresponding statement was posted yesterday, and a negative decision was made long before the deadline.
Feature projects ETF of the above exchanges is that they are tied to futures on bitcoin instead of directly to store and manage your investments in BTC. In all three cases the refusal was formulated and proved in an identical fashion. In rejecting the application ProShares said
“[…] The Commission decided to reject the draft amendments to the rules, as described below, the Exchange does not satisfy the conditions to the obligations imposed on it by the Law on trade in securities and the Regulations of the Commission on [the exchange’s] activities, and the proposal does not comply with the provisions of section 6b(5) of this Law, in particular the paragraph about the content of the Charter the Federal stock exchange, reflecting the targeted elimination of fraudulent and manipulative acts and practices.”
Direxion GraniteShares and received responses of similar content. In all cases, the SEC stressed that “this response is not based on assessing the value and practicality of the use of bitcoin or blockchain technology as a whole as innovation or investment”.
Previously, the SEC also refused to open the ETF to holders of crypto currency exchange Gemini, Tyler and Cameron Winklevoss (Tyler & Cameron Winklevoss), and postponed a decision on a similar request VanEck until September 30, 2018.
Hester pierce (Hester Pierce) who is a member of the Commission, spoke out against these decisions, calling them “harmful” for investors and developers.