Citing fraud and market manipulation concerns, the US Securities and Exchange Commission (SEC) on Wednesday rejected the listing of nine Bitcoin-related exchange-traded funds (ETFs) proposed by ProShares, Direxion Asset Management, and GraniteShares and meant to be traded on the New York Stock Exchange (NYSE) and Chicago Board of Options Exchange (CBOE). The cryptocurrency market reacted immediately, with headliner Bitcoin dropping to as low as $6,310 before recovering slightly to $6,450 as at 6:46 UTC, still nearly 4% down on a daily basis.
“[T]he 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,” the SEC said in three
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