Around a month ago the U.S. SEC spurned the proposal of early bitcoin investors, brothers Winklevoss, to establish a BTC exchange-traded fund (ETF).
At the end of August, several other ETF proposals met the same fate – the SEC mercilessly disapproved the establishment two ETFs by ProShares, five from Direxion and one more from GraniteShares.
As of writing, bitcoin is being traded at the rate of $6,448.
Scam Risks – The Main Reason for Rebuffs
The ETFs which saw the red light from the SEC this time have some peculiar features. The one, filed by ProShares, could trace BTC futures, whereas those from Direxion are reciprocal and leveraged. However, none of them has seen the endorsement from the U.S. assets and trading venues watchdog, CNBC reports.
Just as it happened to the Winklevoss ETF, the SEC explained that the reason for the denial was the scam and speculations on the market of BTC.
As per the SEC, NYSE Arca, which filed the ProShares proposal, had not foreseen measures for averting scam and other manipulative moves. Furthermore, the independent agency stated that this particular applicant did not present any evidence, showing that the BTC futures niche is of considerable size.
Bitcoin Has Nothing to Do With ETFs’ Rejection – SEC
Despite the above mentioned, the SEC highlighted that the repudiation did not depend on the assessment of BTC and DLT as piling or innovation.
Any Other ETFs?
As the SEC does not hurry to endorse an ETF, based on cyber assets, there are other interesting applications waiting for the agency’s answer.
For instance, earlier it delayed the endorsement or rebuff of the VanEck ETF until the end of fall’s first month. Another application, filed last month by Bitwise, is also anticipating the review. The latter, by the way, would trace a number of cryptos, but now everything depends on the SEC’s decision.
In the meantime, bitcoin’s price is fluctuating in the frames of $6,400-$6,700 margins and is showing no positive features like growing. However, there are no downward trends either.