The US Securities and Exchange Commission (SEC) has rejected nine applications for Bitcoin (available on Coinbase) ETF proposals. The SEC published three separate orders yesterday, highlighting the rejections from the three different applicants.
SEC Says No to Bitcoin (available on Coinbase) ETF Proposals
This ruling is a blow to Bitcoin (available on Coinbase) bulls who’d hoped the products would have provided a breakthrough for institutional adoption. Last night, the SEC published its rejection of two proposals from ProShares, two from GraniteShares, and five other products from Direxion.
The rejections come just one day ahead of the deadline stipulated for a pair of Bitcoin (available on Coinbase) ETFs submitted by ProShares. Proshares was working with the New York Stock Exchange (NYSE) ETF exchange NYSE Arca.
The SEC said the proposals did not do enough to show they were “designed to prevent fraudulent and manipulative acts and practices.” All applications denied were directly linked to Bitcoin (available on Coinbase) futures contracts. The SEC said that none of the nine applications had enough information to show that the futures markets are of “significant size.”