ProShares filed two ETF proposals that got rejected by The US Securities and Exchange Commission.
The organization at present has about $30 billion in resources under administration and recorded with the SEC back in September. The trade exchanged assets would have followed BTC futures exchanged on the Chicago Board of Options Exchange and exchanged on NYSE Arca.
The core reason for which ProShares was rejected is stated as:
“This order disapproves the proposed rule change. Although the Commission is disapproving this proposed rule change, the Commission emphasizes that its disapproval does not rest on an evaluation of whether bitcoin or blockchain technology more generally, has utility or value as an innovation or an investment. Rather, the Commission is disapproving this proposed rule change because, as discussed below, the Exchange has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6, in particular, the requirement that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices.
Among other things, the Exchange has offered no record evidence to demonstrate that bitcoin futures markets are ‘markets of significant size.’ That failure is critical because, as explained below, the Exchange has failed to establish that other means to prevent fraudulent and manipulative acts and practices will be sufficient, and therefore surveillance-sharing with a regulated market of significant size related to bitcoin is necessary to satisfy the statutory requirement that the Exchange’s rules be designed to prevent fraudulent and manipulative acts and practices.”
The SEC also rejected ETF proposals from GraniteShares and Direxion today, for similar reasons. Check out the full ProShares document from the SEC.
Exchange-traded assets track a file or group of assets yet exchange like stocks, are generally seen as having the capacity to bring a smash of institutional investors into the cryptocurrency market.
This recent rejection is similar to that of the denial last month when the SEC rejected a proposition documented by Gemini authors Cameron and Tyler Winklevoss. Everyone’s eyes will now be on the VanEck/SolidX Bitcoin ETF, which was as of late postponed and will now get either yes or no from the SEC by September 30th.
For more updates, stay tuned to CoinTopper.com