Dreams of BTC bulls were crushed once more with the US SEC’s rejection of 9 Bitcoin exchange-traded fund proposals.
The American policymaker turned down ETF proposals which come in all shapes and sizes: ProShares made two applications of funds tracking BTC futures, Direxion applied for inversed and leveraged funds five times, and another one was applied for by GraniteShares. The resolve of the Commission regarding the protection against fraudulent activities and BTC market manipulation holds strong, with reasoning behind each filing being such that the companies simply do not meet the Commission’s requirements In terms of envisaging the policies to tackle the issues of fraud and manipulation.
In addition, the Commission pointed at the fact that there is no proof of BTC futures market size to be substantial, which is needed to meet the requirements.
Furthermore, the SEC has explained that the decision was taken without the evaluation of technological and financing potential of BTC and blockchain innovations, but was based exclusively on the companies’ inability to comply with the provisions of the Exchange Act.
The situation with the spree of disapprovals seems quite predictable, however, the cryptocommunity remains optimistic, hoping that the Commission will soon accept a BTC ETF.