The Security and Exchange Commission or SEC has again disapproved Bitcoin (BTC) ETF application with which many hoped the number of bulls would be hoisted to impact the price more in the green.
With the most important criteria of security and anti-fraud, the SEC have rejected multiply ETFs from Direxion, two from PRoShares and one from GranitShares. The move was decided because according to the regulators they did not meet the asked conditions when it comes to preventing fraud and manipulation.
“Surveillance-sharing with a regulated market of significant size related to bitcoin is necessary to satisfy the statutory requirement that the Exchange’s rules be designed to prevent fraudulent and manipulative acts and practices.”
The SEC also cleared that it did not evaluate the technological and investment potential of Bitcoin and blockchain technology before taking its decision. The outcome solely rested on applicants’ failure to abide by individual sections of the Exchange Act.
Similar ETF rejection reasons were given to the previous Winklevoss Twins’ BTC proposals for ETFs that received a NO from the commission. However, Co-founder and CEO of Crescent Crypto – Ali Hassan believes that the SEC will give the green light to a Bitcoin ETF:
“We do think that a product is coming soon,” he told CNBC earlier this month. “Perhaps, in the next 18 months, we’ll see a Bitcoin-only ETF.”
The reply that the SEC gives to any Bitcoin ETF results with the BTC market being impact, and knowing that majorly the altcoin follow the leader. So far it has reacted negatively with the rejections that happened. In the same footsteps, when there is speculation rising about any ETF – SEC related case it pumps the price of the token.