As was expected, the United States Securities and Exchange Commission (SEC) once again denied multiple proposals for a bitcoin exchange-traded fund (ETF).
Following the rejection of the Winklevoss Bitcoin ETF last month, the SEC has reportedly denied nine more ETFs related to the cryptocurrency market leader — the two most notable being from ETF-provider ProShares. A proposal from GraniteShares was also disapproved, alongside five leveraged and inverse ETFs from Direxion.
Fraud and Manipulation
As reported by CNBC, the latest batch of Bitcoin ETF proposals was rejected for the same reasons the Winklevoss Bitcoin ETF was disapproved — namely, concerns over market manipulation and illegal financial activity in the still small-but-maturing market.
Bitcoin Isn’t The Problem
For proponents of Bitcoin, cryptocurrency, and/or blockchain technology, it is important to remember that the SEC’s decision has nothing to do with the merits behind the first and foremost cryptocurrency, the technology it has made famous, or its value as an investment.
Rather, the decision rests solely on technical concerns surrounding the proper provision of a Bitcoin ETF.
Still more applications remain on the SEC’s desk, but all eyes now turn to the Bitwise HOLD 10 Private Index Fund and the VanEck SolidX Bitcoin Trust — the latter of which is widely considered as having the best chance to gain approval from the independent regulatory agency, despite having its decision delayed until September 30 (when it could potentially be delayed, once again).
The price of Bitcoin (BTC) did not react remarkably to the news, having only returned to normalcy after a false price increase coincided with planned maintenance on the BitMEX trading platform.
At the time of this writing, Bitcoin is trading at $6417.
What do you think about the SEC’s latest disapproval of nine Bitcoin ETF proposals? Do you think the VanEck SolidX proposal will gain approval at the end of September, or will it be delayed or denied? Let us know your thoughts in the comments below!
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