The US Filing said no to applications for nine different Bitcoin ETFs including ProShares, Direxion, and GraniteShares after Winklevoss Twins Bitcoin ETF rejection and ETF by VanEck SolidX Bitcoin Trust until September 30, that is certainly raising alarms for applications whose verdicts are scheduled in to the future before the said date like CBOE Bitcoin ETF proposal.
The regulatory agency (predictably) rejected five proposed ETFs from Direxion, two from Proshares, plus a from GraniteShares. Fraud and manipulation are top quality major concerns cited by SEC to the denial while the applicants we had not met SEC’s prerequisite of mentioning rules to halt the breach of ethics.
SEC claims that this outcome is exclusively determined by applicant’s failure to observe individual elements of the Exchange Act without evaluating the technological and investment hypothesis of Bitcoin and blockchain technology before its stance.
The decree said: “The Commission is disapproving this proposed rule change because, as discussed below, the Exchange doesn’t have met its burden in the Exchange Act and then the Commission’s Rules of Practice to show that its proposal is in conjuction with the requirements belonging to the Exchange Act Section 6(b)(5), particularly, the requirement if you have a national securities exchange’s rules be which is designed to prevent fraudulent and manipulative acts and practices.”
“Also, the disapproval will not rest by using an evaluation of whether bitcoin or blockchain technology more generally, has utility or value for an innovation or perhaps an investment.”
After SEC’s consecutive disapprovals including nine more Bitcoin ETF applications, the optimism of Bitcoin bulls must be exhausted but there are some positive believers that assert SEC will approve a Bitcoin ETF soon.
Ali Hassan, the co-founder plus the CEO of Crescent Crypto, predicts it will affect in the next 18 months.
“We do think that your chosen product is out soon,” he told CNBC earlier this month. “Perhaps, in the next 18 months, we’ll get a Bitcoin-only ETF.”
The SEC additional mentioned your authorities hadn’t received the applications at this point that could prove the running size of the Bitcoin futures market, as was quoted while in the ETF applications. It read:
“Surveillance-sharing accompanied by a regulated market of serious size relating to bitcoin is necessary in order to meet the statutory requirement that your Exchange’s rules be which is designed to prevent fraudulent and manipulative acts and practices.”
Now, all bitcoin bulls are looking ahead to the Sec’s final dictum within the CBOE Bitcoin ETF proposal. Some legal experts think the SEC will probably hold off until 2019 on selecting about their proposal. Meantime, CBOE has been fairly active in working with the SEC to mitigate concerns.
The companies are curious to witness how the SEC’s decision would engage in, as any kind positive news will surely send Bitcoin price $6442.08 -0.15% upwards.
Bitcoin market is already so volatile after SEC’s judgment, it instantaneously reacts negatively while impacting the additional digital currencies inside of a series. It is usually interesting to find out if commission eventually approves crypto ETF ultimately pump-up the bitcoin value?