The US Securities and Exchange Commission (SEC) rejected the application of ProShares Bitcoin ETF and ProShares Short Bitcoin ETF - bitcoin-oriented exchange-traded funds.
At the same time, a similar fate awaited several applications for the launch of bitcoin-ETF, filed by Direxion and GraniteShares.
The application for the launch of ProShares Bitcoin ETF and ProShares Short Bitcoin ETF was jointly with made NYSE Arca, but the SEC believes that the proposed changes of the rules of the exchange can not be accepted.
As noted in the Commission's official response, the exchange was not able to demonstrate that its offer meets the requirements of Section 6 (b) (5) of the Exchange Act, in particular with regard to the requirements for preventing manipulation on the market.
Separately, the SEC drew attention to the fact that its decision does not depend on an assessment of whether bitcoin has value as an innovation or an investment.
Almost the same arguments were brought by the Commission, justifying its decision to refuse the launch of five bitcoins-ETF, the applications for the launch of which were previously filed by Direxion, and two GraniteShares funds. The applications describe tools that are directly tied to the rate of bitcoin and other crypto-currencies.
The first application for the launch of exchange funds ProShares filed in September 2017, but later it was withdrew. The new application was filed in December of the same year, and in the spring of this year it became known that the SEC began its consideration.
According to the widely held opinion, bitcoin-ETF will significantly revive the market due to the inflow of institutional money, but recently Bitcoin-evangelist Andreas Antonopoulos expressed the opinion that such funds can provoke a wave of manipulation in the cryptocurrency market.