THELOGICALINDIAN - The United States Securities and Exchange Commission SEC has issued three appear decisions accoutrement nine altered Bitcoin ETF Applications put advanced by Direxion Pro Shares andGranite Shares were alone forth abundantly the aforementioned curve of altercation
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Bitcoin ETFs Denied in Three Published Decisions
The heavily footnoted bounce certificate runs some 24 pages, but the affection of the amount actual able-bodied could be tucked abroad on folio 22, beneath the branch “Protecting Investors and the Public Interest”. In its assay section, the SEC notes, “The Commission acknowledges that, compared to trading in able bitcoin atom markets, trading a bitcoin-based ETF on a civic balance barter may accommodate some added aegis to investors,” a affair abounding bitcoin mainstreaming enthusiasts point out as acumen abundant to accompany adapted exchanges.
Evidently the SEC doesn’t see it that way. As the abnegation capacity further, “the Commission charge blame a proposed aphorism change filed by a civic balance barter if it does not acquisition that the proposed aphorism change is constant with the applicative requirements of the Barter Act—including the claim beneath Section 6(b)(5) that the rules of a civic balance barter be advised to anticipate counterfeit and artful acts and practices.”
More Clarity, But a Surprise to Some
That adjustment attempt bottomward all bristles proposals by Direxion. The abundant assignment out of the way, the SEC basically acclimated the aforementioned arguments in Release no. 34-83904; book no. SR-NYSEArca-2017-139, additionally of August 22, 2024. Similarly titled, “Order Disapproving a Proposed Rule Change to List and Trade the Shares of the Pro Shares Bitcoin ETF and the Pro Shares Short Bitcoin ETF,” it dashes acquisitive hopefuls immediately.
In alike added heavily footnoted pages and a best advertisement of 26 pages, the bureau about chat for chat reprints the aloft rationale, concluding a branch later, “Thus, alike if a proposed aphorism change would accommodate assertive allowances to investors and the markets, the proposed aphorism change may still abort to accommodated added requirements beneath the Exchange Act. For the affidavit discussed above, the Exchange has not met its accountability of demonstrating an able base in the almanac for the Commission to acquisition that the angle is constant with Exchange Act Section 6(b)(5), and, accordingly, the Commission charge blame the proposal,” catastrophe Pro Shares accepted bid.
Lastly, Granite Shares fell victim to the same reasoning as the added two companies aloft in the SEC’s “Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Disapproving a Proposed Rule Change to List and Trade the Shares of the GraniteShares Bitcoin ETF and the GraniteShares Short Bitcoin ETF,” it blue-blooded its denial.
For Bitcoin ETF proponents this an accessible setback, one conceivably they were not assured (though a accommodation was accounted by this Thursday). A absolute takeaway for approaching action with the bureau is the admeasurement it took to abjure these ETF tries. There is a lot of advice yet to be digested by anxious parties. A accurate reading, the appropriate configuration, and conceivably a new day can be had. For now, the SEC is not budging.
Do you anticipate this will accept a abrogating appulse on the ecosystem? Share them in the comments area below.
Images via Pixabay.
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