The U.S. Securities and Exchange Commission has rejected around nine applications for bitcoin exchange-traded funds or ETFs, including that of ProShares. The denial of proposals from three different applicants were over concern about fraud and manipulation of bitcoin markets.
SEC rejected two ETFs applications filed by ProShares, two from GraniteShares, and five ETFs applications from Direxion.
New York Stock Exchange ETF exchange NYSE Arca submitted the applications of ProShares and Direxionin, while Cboe BZX Exchange, Inc. submitted that of GraniteShares.
SEC said NYSE Arca had not met its requirement that a national securities exchange's rules be designed to prevent fraudulent and manipulative acts and practices. The Exchange offered no record evidence to demonstrate that bitcoin futures markets are 'markets of significant size."
Meanwhile, the Commission emphasized that its disapproval does not rest on an evaluation of whether bitcoin, or blockchain technology, has utility or value as an innovation or an investment.
SEC in July had rejected a much anticipated second attempt by crypto exchange Gemini, run by Tyler and Cameron Winklevoss, to list a bitcoin ETF. Concerns about investor protection and market manipulation were the reasons for rejecting the proposal.
The regulator is considering several other applications for crypto ETFs, including a recent filing by Crypto asset manager Bitwise. Earlier, the regulator announced it was delaying a decision on the VanEck ETF until September 30.
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