The US Securities and Exchange Commissions reportedly rejected the bitcoin-ETF applications filed by ProShares. The decision was made just before the consideration deadline.
In case of a positive determination, ProShares could become able to open ProShares Bitcoin ETF and ProShares Short Bitcoin ETF and enter the NYSE Arca platform.
Along with ProShares, some other companies also faced a negative decision. SEC rejected five applications from Direxion and two applications filed by GraniteShares.
The SEC noted in the released statement:
"Rather, 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.10 Among other things, the Exchange has offered no record evidence to demonstrate that bitcoin futures markets are markets of significant size".
Besides, the Commission has also mentioned that the estimate of the bitcoin value as either innovation or investment has no reflection on the determination.
Notably, the SEC named practically the same reasons behind the rejection of other applications filed by Direxion and GraniteShares.
By now, all bitcoin-ETF applications have been either rejected or delayed. In early August, the regulator rescheduled consideration of the application from VanEck and SolidX till end September.