SEC Rejects ProShares and Seven Other Bitcoin ETFs
The U.S. Securities and Exchange Commission has again disapproved several proposals for a Bitcoin ETF. The latest rejection involves two ETFs filed by ProShares that would track Bitcoin futures contracts, another from GraniteShares, and five leveraged and inverse ETFs from Direxion.
Similar to its disapproval of the Bats BZX Exchange application to list the Winklevoss Bitcoin ETF, the SEC expressed concern about fraud and manipulation of Bitcoin markets.
In its statement the Commission said that NYSE Arca, which filed the ProShares application, had not met its requirement “that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices. Among other things, the Exchange has offered no record evidence to demonstrate that bitcoin futures markets are ‘markets of significant size.'”
At the same time The SEC emphasized that the disapproval does not rest on an evaluation of whether bitcoin or blockchain technology has value as an innovation or investment.
While the SEC has yet to approve a cryptocurrency-based ETF, other applications are still in front of the agency, including an ETF that would track a basket of cryptocurrencies that was filed in July by Bitwise, and the VanEck SolidX Bitcoin Trust. The SEC announced it was delaying a decision on approval or disapproval of the VanEck ETF until September 30.
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