Proshares Bitcoin ETF proposals fail to smile with US SEC rejection

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December 26, 2018 by
Proshares Bitcoin ETF proposals fail to smile with US SEC rejection

The two Proshares proposals on Bitcoin ETF have received negative feedback from the Securities and Exchange Commission of US. SEC has explicitly placed the grounds on which the regulatory body denied to authorise the proposals. For so long, the Proshares Bitcoin ETF was awaiting the decision of the US based regulatory unit.

It was last year in September when the business filed for its authorisation with SEC. The exchange traded funds can help in tracking the Bitcoin futures, which are traded on NYSE Arca and Chicago Board of Options. The declaration provided by SEC has stated, “This order rejects the suggested rule change. Although the Compensation is rejecting this suggested policy modification, the Payment highlights that its disapproval does not hinge on an assessment of whether bitcoin, or blockchain modern technology a lot more generally, has utility or worth as an innovation or an investment.”

“Rather, the Commission is rejecting this recommended guideline modification since, as reviewed below, the Exchange has not satisfy its burden under the Exchange Act as well as the Payment’s Guidelines of Practice to demonstrate that its proposal follows the needs of the Exchange Act Area 6, specifically the demand that a national protections exchange’s policies be designed to prevent illegal and manipulative acts and practices,” the notice further reads.

The statement has continued to claim, “To name a few things, the Exchange has actually provided no document proof to show that bitcoin futures markets are ‘markets of significant dimension.’ That failure is critical because, as explained below, the Exchange has cannot establish that other ways to avoid deceitful as well as manipulative acts and techniques will certainly be sufficient, and consequently surveillance-sharing with a regulated market of considerable size related to bitcoin is essential to satisfy the statutory demand that the Exchange’s regulations be designed to stop deceitful and manipulative acts and also techniques.”

US SEC has previously rejected the Bitcoin ETF proposal from Direxion, Solid X and also Granite Shares. Adding to the rejection list is of Tyler and Cameron Winklevoss, the founders of Gemini, a leading cryptocurrency exchange. During the last four years, the crypto industry and ETF have been constantly striving for an authorisation to make payment, however, they have meted failure.

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