The SEC rejected the applications of 9 ETFs from ProShares, Direxion and GraniteShares

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The SEC rejected the applications of 9 ETFs from ProShares, Direxion and GraniteShares

The Commission on securities and exchange Commission (SEC) announced that it rejects the proposal NYSE Arca Proshares and Direxion ETFs and GrantieShares to issue a bitcoin ETF.

The SEC previously stated that it would defer consideration until the fall, as the approval bitcoin ETF required making minor amendments to the legislation. The market reacted to these statements positively, as could be judged by the growth rate of bitcoin. Now, the course of bitcoin falls against the background of statements SEC.

The official reasons for the rejection were: the manipulation of the market; the low activity of trading in futures of bitcoin (in the words of Senator Giancarlo); the lack of the necessary level of protection for customers of the exchange.

The SEC led the group BitConnect and PUMPnDUMP (telegrams), who used bots to control volume of trading and the prices of traded assets. Also, the Commission on securities and exchange Commission has published data showing that the concentration of BTC in a small amount of purses is very high – this may allow their owners to control the course of virtual currency.

At the moment the Commission had not yet approved the launch of any bitcoin ETF, and the players on the stock market starting to lose my optimistic attitude. But in September, the SEC is slated to announce decisions on three applications. What they will be, is difficult to say exactly, but approval of three applications definitely not worth the wait (although I have been assured that most applications will be approved).

Links to the SEC filings:

https://www.sec.gov/rules/sro/nysearca/2018/34-83904.pdf

https://www.sec.gov/rules/sro/nysearca/2018/34-83912.pdf

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