The SEC Rejected 9 Bitcoin ETFs, But Not This Last One

Earlier this year, 10 Bitcoin exchange-traded funds (ETFs) were proposed to the Securities and Exchange Commission (SEC). Everyone was excited by the possibility of a more accessible way to buy, hold and track the value of bitcoin. But on August 22, the SEC rejected 9 of those filings. The SEC seems to be cracking down. What does this mean for the future of bitcoin investing?

The ETF Rejections

In a historic decision, the SEC rejected 9 out of 10 bitcoin ETF filings. Direxion submitted five proposals, and ProShares and GraniteShares presented two each. The SEC rejected all 9 filings for the same reason:

“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.”

However, the SEC bitcoin ETF rejections emphasized that this decision does not reflect the validity, value and utility of bitcoin and blockchain. Despite this assurance, the SEC’s bitcoin ETF rejections could have an impact on bitcoin’s immediate value. They could also potentially to decrease cryptocurrency’s market value, at least in the short term.

The SEC Considers the Last Bitcoin ETF

The SEC has until September 30 to make a decision on the final Bitcoin ETF filing. SolidX-VanEck Bitcoin Trust submitted its ETF proposal on June 5. But back in early August, the SEC delayed its decision on SolidX-VanEck, which resulted in a  substantial drop in bitcoin’s value.

This filing is a collaboration between VanEck, an investment firm, and Solid X, a financial service company. This is their third application, following two unsuccessful bitcoin proposals. It’s also the only one of the 10 proposals that would create a physical ETF. “The investment objective of the Trust is for the Shares to reflect the performance of the price of bitcoin, less the expenses of the Trust’s operation,” explains SolidX-VanEck Bitcoin Trust.

Additionally, this Bitcoin exchange-traded fund will insure against loss or theft. Having this level of security would increase investor confidence, which would encourage more people to invest in bitcoin. Could the last Bitcoin ETF have a different fate than the rest? If the SEC approves the last Bitcoin ETF proposal, SolidX-VanEck Bitcoin Trust will have made cryptocurrency history.
We will see how things change because Coinbase might soon launch a Bitcoin ETF and even approached BlackRock for help.

blocklr

The following articles are the opinions of Blocklr's editorial staff, not financial advice.

Recent Posts

The State of Cryptocurrency Today: A Comprehensive Overview

Cryptocurrency has come a long way since the inception of Bitcoin in 2009. With the…

2 years ago

What Is The Difference Between Ripple And XRP

Ripple: The Company While people often use the two terms interchangeably, there is a clear…

2 years ago

Bitcoin (BTC) vs Bitcoin Cash (BCH) · What Are the Differences?

Learn the differences between Bitcoin vs Bitcoin Cash and why they're important.

3 years ago

XRP Ripple – A Complete Beginners Guide To Ripple

Ripple's unique consensus-based protocol for validating transactions allows for super-fast transaction times and low commissions.

3 years ago

13 Crypto Exchanges with the Lowest Fees

A comprehensive list of the 13 crypto exchanges with the lowest fees.

5 years ago

How Does Nexo, Mastercard’s Cryptocurrency Credit Card, Work?

Can Nexo solve some of crypto and finance's biggest problems?

5 years ago