August 22, the Commission on securities and stock exchanges (SEC) the USA has rejected nine applications to open a Bitcoin exchange-traded funds (ETFs). Market leading cryptocurrency immediately reacted to this decision – the price of BTC dropped from $6,670 to $6,281, and then was slightly corrected.
The SEC rejected 7 applications from the company ProShares and 2 from GraniteShares. In an official statement, the SEC stated: “the Commission opposes the opening of the Bitcoin ETF, as the sec failed to prove that their applications comply with the requirements of the legislation on exchange activities, in particular in relation to the manipulation rate of the assets. In addition, the exchange has not confirmed the prospectivity of the Bitcoin market and its large size.”
Representatives of the SEC to indicate low level of liquidity and the unpredictable cryptocurrency market. Kriptonyte not regulated properly, which is why large companies have a chance to affect the price of BTC. However, the Commission has not evaluated the potential of blockchain technology and Bitcoin in the financial sector, its findings relate to purely exchange-traded funds.
In July of this year, the Winklevoss brothers said about the immunity of the Bitcoin market to manipulation, however, according to the staff of the SEC, their words were not supported by facts, therefore, request the brothers to open ETF was rejected. In August, the SEC has deferred action on the proposal of the investment company VanEck on physical Bitcoin ETF, perhaps this application will suffer another fate, and we eventually will witness the first Bitcoin ETF.