The SEC Continues to Disapprove Bitcoin ETF Proposals

The SEC Continues to Disapprove Bitcoin ETF Proposals

The SEC Continues to Disapprove Bitcoin ETF Proposals

$BTCUSD

 Again, the SEC has disapproved more proposals for Bitcoin ETF.

The latest rejection has seen 8 bids turned down by the authorities; 2 from Proshares that would have tracked Bitcoin futures, another from GraniteShares and 5 more from Direxion.

The SEC said that Bitcoin ETF markets do not meet the requirement 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.’”

Commissioner Hester M. Peirce dissented the ruling, with her saying that “the Commission’s interpretation and application of the statutory standard sends a strong signal that innovation is unwelcome in our markets, a signal that may have effects far beyond the fate of Bitcoin ETFs.”

Considering how the 21st Century has seen a rapid development in technology and other investment schemes, it is a wonder why the SEC continues to act as dinosaurs and not take cryptocurrency markets as seriously as they should be.

Those who are new investing and looking at trading strategies for beginners may only be interested in starting because of the rapid rise and success of Bitcoin.

It has made trading popular with the younger generation and getting more and more people to invest their money as opposed to just saving it for a rainy day.

But, the regulation around the trading of Bitcoin and other cryptocurrencies is surely on its way, meaning that the Commission would see it as a far less risky investment strategy.

Whether or not that regulation is coming in the near future remains to be seen but it’s well worth noting that even if the government decides not to publicly regulate the market, we have already seen that private regulation has proved an effective method.

Notably, the mining of Bitcoin is not geopolitically limited, unless you consider that the mining processes occur more prominently in locations where electricity tends to be cheaper. This aside, Bitcoin is far less susceptible to being influenced by geopolitical matters compared to other trading and investment markets.

The SEC says that their disapproval does not rest on an evaluation of whether Bitcoin or blockchain technology has value as an innovation or investment.

So, it seems that the SEC has not completely turned its back on Bitcoin and a possible ETF in the future; there is likely to be further moves ahead with a new ruling to be made at the end of the month on the VanEck application for a cryptocurrency ETF.

Currently, Bitcoin is trading at 7,285.34,+15.29 or +0.2103%, as of 4:19 BST, the market is open

Have a terrific week.

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