A knife in the back: the SEC has rejected nine applications for ETFs and dropped the market

In early August, the Commission on securities and exchange Commission (SEC) once again postponed the deadline for issuing a decision on the ETF from VanEck, and Solidx. After that, several analysts said that the regulator is unlikely to approve open-end investment funds on the Bitcoin until the spring of next year.

Until their prediction comes true — now the SEC has rejected nine applications for ETFs that have filed exchange ProShares, Direxion and GraniteShares. This writes Cointelegraph.

When the SEC approves an ETF? Not today

The reason for the refusal was the fact that all three exchanges were offered to issue ETFs linked to futures on Bitcoin, and not to the coins.

The Commission decided to reject the offer because the exchange failed to provide evidence to the satisfaction of the conditions to the obligations in accordance with the exchange Act. In particular, the paragraph on contents of the Charter of the Federal exchange, which reflects the purposeful elimination of fraudulent and manipulative actions.

The market reacted to the decision of the SEC fall. Bitcoin fell to $ 6452 and the Ethereum — up to $ 275. Capitalization of cryptocurrencies at the time of this writing is 209 billion dollars.

Earlier in the week, Bitcoin investor Andreas Antonopoulos saidthat the ETF could hurt the stock market. According to him, the approval of open-ended funds will lead to another bubble in the market and will open wide opportunities for manipulation of the rate of coins. Let’s see if he’s right.

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