SEC Yet To Approve Any ETF Despite Massive Applications
Three blockchains trading platforms have been denied the permit of operating in the United States under the Bitcoin exchange-traded fund. To date, the SEC has turned down nine applications.
According to the commission, ETFs were rejected because they did not meet requirements on curbing fraud and manipulation. The applicants are said to have failed in proving that they had adhered to the securities exchange’s regulations.
It pointed out that the current market value of bitcoin did not influence the rejection. It did not factor in whether blockchain is a utility or an investment.
The latest ETF rejections affected ProShares which had two applications, similar to Direxion and GraniteShares.
While turning down ProShares ETFs, the commission noted that the firm did not prove that bitcoin futures markets will be of significance. Further, the exchange did not have fraud preventive mechanism in place.
So far, no ETF has been approved although there are dozens of applications in the pipeline. Bitwise and VanEck are among the prominent applicants in waiting. They will know their fate in September.