Bitcoin ETFs still a no good with the SEC
The price of Bitcoin took on added volatility after it was announced that the SEC, once again, rejected applications for a Bitcoin ETF.
This is an ongoing saga between Wall Street institutions that are itching to get into the crytppcurrency market and the government regulator. So far, all applications for ETFs relating to cryptocurrency, Bitcoin in particular, were either outright rejected or the decision was delayed.
cointelegraph.com
On Wednesday, a day ahead of the deadline, the SEC rejected 9 applications for BTC related ETFs including 2 filed by ProShares.
The SEC stated:
"[T]he Commission is disapproving this proposed rule change because, as discussed below, the Exchange has not met its burden under the Exchange Act and the Commission's Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6(b)(5), in particular the requirement that a national securities exchange's rules be designed to prevent fraudulent and manipulative acts and practices.
“Among other things, the Exchange has offered no record evidence to demonstrate that bitcoin futures markets are ‘markets of significant size.’ That failure is critical because, as explained below, the Exchange has failed to establish that other means to prevent fraudulent and manipulative acts and practices will be sufficient, and therefore surveillance-sharing with a regulated market of significant size related to bitcoin is necessary.”
Thus far, the SEC is not changing the stance it initially took regarding these ETF applications. Overall, they view the Bitcoin market as something small, meaning it is subject to manipulation. On this point, it is hard to argue with them. A $100B+ market is not very big relative to other markets. With the manipulation seen in the gold and forex markets, both significantly larger than Bitcoin, it is easy to see their point.
This is a set back for Wall Street yet not of great surprise. Few expect an approval any time soon from the regulators. While they are not banning Bitcoin and other cryptocurrencies, the SEC is not exactly rushing to approve every fund idea that is put before them.
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we dont need the sec we never needed them!!
Y??
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I think it needs more time for the government to fully embrace crypto as one of the legal currency in the country. For now, crypro warriors still pushing its way to be legally accepted to the public.
It's good that these etf's were denied. Any etf not backed by real bitcoin will only dilute the market and not increase the value of bitcoin. Like the futures non backed products ruin the underlying asset.
they will keep kicking the can down the street for another couple years at least. Just sad.
While the SEC has yet to approve a cryptocurrency-based ETF, other applications are still in front of the agency, including an ETF that would track a basket of cryptocurrencies that was filed in July by Bitwise, and the VanEck SolidX Bitcoin Trust. The SEC announced it was delaying a decision on approval or disapproval of the VanEck ETF until Sept. 30.
CBOE etf will the first, after that, we see a 100$ k price, I think it will be this year. Decreasing supply (abandonment, hodl, less mining), increasing demand..This is Bitcoin! This will go to the moon!
I hope they're all rejected. The whole point of Bitcoin is to cut out the middleman. If the big boys want to play the game, they can do it like everybody else and trade Bitcoin directly either OTC or through an exchange.
Good to know information , SEC will never approve BITCOIN, that is my view because it’s money in air rather than a product , if it approves then there has to be security and someone has to take care of that , let’s hope for the best
I still think it is just a matter of time before they get approved. These companies would't waste hundreds of thousands of dollars on lawyers and blockchain related divisions in their company if they weren't sure there would be some kind of approval soon. I think it will happen sooner rather than later.
In a few years when ppl realize how important cryptocurrencies are for the economy
yes
I am agree with you @@@annemariemay
if they are not damn sure they would not take this kind of block chain projects,,,, I am totally agree with you.
Hmmmn... It's already happening
Your predictions are accurate
Security seems to of concern the most, capacity can always grow. Seems like every three or four months you will see a story where someone took millions or billions from some exchange they hacked and ran with it.
indubitably, things is happening right now.
Thanks.