In August, the Securities and Exchange Commission (SEC) rejected
nine separate applications to list Bitcoin exchange-traded funds
(ETFs).
Proposals by ETF sponsors including Direxion, ProShare and
GranitShares, to list the first US-based cryptocurrency ETFs
were denied by the SEC. Each rejection order contained the
following language as part of its reasoning:
"...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."
