The U.S Securities and Exchange Commission (SEC) rejected the application to open two Bitcoin funds from ProShares company, as well as applications of Direxion (to open five Bitcoin funds) and GraniteShares (to open two Bitcoin funds).
In all three official statements of the Commission (at the requests of ProShares, Direxion, GraniteShares) there are similar reasons for refusal — notes that company’s propositions failed to demonstrate compliance with the requirements of the Exchange Act Section 6(b)(5), particularly relating to the prevention of market manipulation. It is emphasized that the Commission does not take into account the issue of whether bitcoin has value as a technology or an investment.
ProShares filed the first application to launch an exchange trading fund in September 2017, but then recalled it. A new application was filed in December of the same year. In the spring of 2018, it became known that the SEC began reviewing the application.
Previously SEC repeatedly refused to open a Bitcoin-ETF of brothers Winklevoss and deferred a decision on the Bitcoin-ETF of VanEck and SolidX companies.
WHY IS IT IMPORTANT?
- Bitcoin-ETF should make the cryptocurrency status more legal, and the process of trading it more transparent. Any news regarding bitcoin-ETF affects the course of bitcoin and other cryptocurrencies.
- Currently, the whole top-100 cryptocurrencies (except four which are showing insignificant growth) are trading in the red zone. Bitcoin dropped by %3,50 and trades for $6,455