The value of Bitcoin remained undeterred this week, with Bitcoin prices remaining relatively stable despite the U.S. Securities and Exchange Commission (SEC) rejecting nice separate proposals pertaining to exchange-traded funds (ETFs).
On August 22, the SEC released three orders that shot down the proposed ETFs. The commission said that it disapproved this proposed rule change as the exchange did not meet the requirements under the Exchange Act and the Commission’s Rules of Practice. The proposal wasn’t consistent with the requirements of the Exchange Act Section 6 (b) (5). It especially did not meet the requirement that needs exchanges to be designed in a certain manner to prevent fraudulent and manipulative acts and practices.
Bitcoin markets reacted coldly to this news of ETF rejections and the value of Bitcoin wasn’t impacted too much. The price of the digital currency suffered modest losses. The SEC in its statement pertaining to the rejections mentioned that the applicants failed to prove that the crypto market was big enough to warrant an ETF. In other words, the SEC seems concerned that the small cryptocurrency market is vulnerable to manipulation.
The SEC in its statement, further explained that since the exchange failed to establish other sufficient means of preventing fraudulent activities and malpractices, it feels surveillance-sharing with a regulated market of significant size related to bitcoin is important.
According to the Forbes report, Market observers were of the opinion that these losses were relatively insignificant as the crypto market already factored the SEC’s decision into prices. Managing director of Crypto Asset Management, Tim Enneking said that virtually nobody expected any of these ETF applications to be approved after the recent Winklevoss ETF proposal rejection.
While the Bitcoin value remained relatively consistent over the past week despite the ETF rejections by SEC, the commission announced this week that they will review their decision on the same. However, it seems unlikely that they will reverse the course of their decision.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]