SEC Rejects Nine Bitcoin ETFs

SEC Rejects Nine Bitcoin ETFs

Yesterday the Commission published three orders disapproving a total of nine bitcoin exchange-traded funds (ETFs) proposed by three separate companies.

The rejected applications included:

Notably, the reason for disapproval has been worded identically in all the three cases:

...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(b)(5), in particular the requirement that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices.

The U.S. Securities and Exchange Commission (SEC)

At the same time, the SEC stresses:

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.

The U.S. Securities and Exchange Commission (SEC)

Earlier, an ETF proposal filed by the Winklevoss twins was rejected twice, and the Commission has yet to approve a bitcoin ETF.

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