9 Bitcoin ETF Rejected In The US
The US Securities Exchange Commission has declined to approve nine bitcoin exchange trading funds. The applications were submitted by three firms namely ProShares pair, Direxion and GaniteShares.
It means that the firms will not be listed until certain conditions are met. The rejection was announced on Wednesday. The agency had set aside Thursday as the last day of submissions.
The SEC has also turned down ETFs proposals from two firms. According to the agency, the three rejections came after the applicants failed to meet the conditions stipulated by the exchange laws. They also failed to show consistency with regulations by the Exchange Act. It noted that they did not highlight ways of curbing fraud.
SEC also raised concerns with price manipulations under resistance. This concern led to the disapproval of two ETFs. They failed to provide enough details on demonstrating that bitcoin futures are of important value in the market.
In March this year, the SEC noted that ProShares have no plans of retaining bitcoin future contracts when expired. The authority noted that it intended to close such futures which were a risk for the two ETFs.
The SEC said that the rejection was not purely based on the value of bitcoin acting as an investment. The new rejection contains the same reasons as indicated in the early disapproval of the hyped bitcoin ETC by the Winklevoss brothers last year. The rejection was later reapplied.
However, the appeal was also rejected. The twins alleged that the crypto scene is uniquely resistant to manipulation. The SEC noted that the argument was not supported by any records at the commission.
In August, SEC staggered in issuing a ruling on another ETC application by VanEck and SolidX, for trading. Questions were raised after the firms argued that Bitcoin futures-backed fund, should have a physically-backed platform.