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Bitcoin ETFs once again, rejected by SEC

Bitcoin EFT rejected

The crypto world is well aware of SEC’s rejection of crypto ETFs until now. In a recent development, the SEC has rejected another nine ETF filings from various organisations.

This current rejection includes two ETFs that were filed by ProShares to track Bitcoin future contracts, one from GraniteShares, and another five of leveraged and inverse ETFs of Direxion. The SEC’s disapproval has landed these ETFs into the same league as that of the Winklevoss twins’ which was filed in July.

Following the reasons for rejection mentioned previously, the SEC is once again concerned with the possibility of fraud and manipulation in the crypto market. By doing so, it aims to protect the investors and traders.

The regulatory body stated about the application of two ProShares ETFs by NYSE Arca that it did not meet the standards which are required by a national securities exchange for preventing “fraudulent and manipulative acts and practices.” SEC also shared that “among other things, the Exchange has offered no record evidence to demonstrate that bitcoin futures markets are ‘markets of significant size.”

As of now, the SEC has not approved any cryptocurrency ETF, and there continue to be more applications for the body to accept or reject. The SEC also reiterated that its present rejection of crypto ETFs is not based on the views or evaluation of Bitcoin and its underlying technology as an investment or innovation. The decision only relied on the failure of the applicants to comply with specific sections of the Exchange Act.

Despite the recent rejections, industry veterans are optimistic about the SEC decision regarding CBOE ETFs. “With the SEC concerned about ETF applications meeting the standards outlined by the Exchange Act, and not with the evaluation of Bitcoin as an investment, there’s still hope for CBOE ETFs. They have a promising future, given that the roots of CBOE trace back to 1973. Additionally, the proposed shares offered by the company are worth almost 25 BTC, which substantially reduces the risk exposure of these ETFs by restricting holdings to established and institutional investors,” shared Vajahaath Hussain, CEO of Almora– a crypto investment bank exclusively with Coinedict.

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