Connect with us
Bitcoin ETFs: 9 Rejected, What’s in Store for the 10th One?

Bitcoin

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

Will the SEC approve the 10th bitcoin ETF after rejecting the 9 others?

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.

Trending

What is an ETF? Everything You Need to Know About Exchange Traded Fund What is an ETF? Everything You Need to Know About Exchange Traded Fund

What is an ETF? Learn Everything About Exchange Traded Funds

Cryptocurrency

BlackRock and Coinbase in Talks To Launch Bitcoin ETF BlackRock and Coinbase in Talks To Launch Bitcoin ETF

Bitcoin ETF on Horizon as BlackRock and Coinbase Reportedly in Talks

Bitcoin

Morgan Creek Digital Asset Index Fund Brings Crypto Closer to Institutional Investors Morgan Creek Digital Asset Index Fund Brings Crypto Closer to Institutional Investors

Inside The Morgan Creek Digital Asset Index Fund for Crypto

Cryptocurrency

Bitcoin Transaction Volume is Higher than Gold

Bitcoin

Bitcoin Tracker One: An Easier Way to Invest in Bitcoin Bitcoin Tracker One: An Easier Way to Invest in Bitcoin

Bitcoin Tracker One: an Easier Way to Invest in Bitcoin

Bitcoin

SEC To Decide On 9 Crypto ETFs Over Next 60 Days SEC To Decide On 9 Crypto ETFs Over Next 60 Days

SEC Embarks Upon Decision That Will Drastically Impact Cryptocurrency As We Know It

Bitcoin

Bitcoin Tumbles Below $6500 Prior to Delayed SEC Decision Bitcoin Tumbles Below $6500 Prior to Delayed SEC Decision

Bitcoin Tumbles Below $6500 Prior to Delayed SEC Decision

Bitcoin

Connect
Newsletter Signup