Two U.S. companies shelved proposals to launch bitcoin exchange-traded funds (ETF) due to ongoing concerns by the Securities and Exchange Commission (SEC), according to the filings published on Monday.
According to one of the filings, the SEC is expressing concerns regarding the liquidity and valuation of futures contracts based on the digital asset.
A short time ago, trusts controlled by Rafferty Asset Management LLC and Exchange Traded Concepts LLC each canceled plans to launch three bitcoin funds that could be traded by retail investors as easily as stocks.
Fund managers thought the proposals had a chance at winning approval given the launch last month of futures contracts based on bitcoin on both the CME and the CBOE exchanges.
Recently, we have reported that SEC specified the size of civil penalties it seeks from fraudulent entities operated by Renwick Haddow.