Bitcoin ETF
  • The Securities Exchange Commission (SEC) took down the proposal for a bitcoin-based ETF by Cameron and Tyler Winklevoss, due to the fraud and manipulated markets of BTC.
  • The commission has yet rejected the proposal of bitcoin futures based ETF’s by ProShares, one from GraniteShares, and five leveraged and inverse ETFs from Direxion with fraud and manipulation as the key reasons.
  • Bitcoin’s price fell below the $6,500 USD mark after the SEC rejected the proposals on August 23rd 2018.

Bitcoin (BTC) has been fighting a battle of regulation across the globe, as governments and regulatory bodies keeping a close watch to its movement in the economies. One particular country that has faced a backlash from the regulators is the United States. The SEC rejected the latest proposal to introduce two electronic traded fund (ETF’s) – backed by Bitcoin futures – the ProShares Bitcoin ETF and the ProShares Short Bitcoin ETF this Thursday.

The ProShares ETF’s proposal was first submitted to the SEC in December 2017. However, the embryonic market and low adoption of blockchain and cryptocurrencies across the globe caused a withdrawal of the proposal by ProShares. The company later submitted the proposal this year with the value of these ETF’s expected to be determined by the bitcoin futures contracts trading on CME or the Cboe Futures Exchange according to the first proposal.

U.S securities regulator, SEC, rejects the ProShares ETFs

On its verdict on the viability of the ProShares ETFs, the SEC rejected the proposal to introduce Bitcoin futures ETF’s sighting fraud and manipulation of BTC markets by certain players as its major concern. This comes days after the U.S securities regulator postponed the decision to approve the Cboe’s VanEck/SolidX bitcoin ETF to September 30th 2018 that caused a huge fall in Bitcoin’s price.

The Winklevoss ETF hearing presided the legislation of other Bitcoin ETFs as the SEC rejected the proposal made by the Gemini founders, Cameron and Tyler Winklevoss. In the filing made by ProShares and NYSE Arca, the SEC determined that the exchange proposal was rejected on basis of the fraudulent BTC market and a lack of significant size of the markets. The statement read that the exchange was yet to meet the requirements and,

“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’.” – Report from the U.S securities regulator.

BTC price falls by 5% in a day after SEC decision

The rejection of yet another Bitcoin ETF proposal by the SEC has seen Coinbase, Kraken and Bitstamp exchange trade volumes of BTC continue to drop to lower lows as bears took the market on the decision to reject the ProShares ETFs. Bitcoin currently trades at $6,421.93 USD, representing a 5.52 decrease in price in the last 24 hours. The coin retains the top spot in market capitalization rankings with a total of $110,622,015,007 USD worth of BTC traded.

SEC decision however had no effect on the dominance shown by BTC as it accounts for over half of all the cryptocurrency value in the market at 53.

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