The cryptocurrency market has taken a hit following the rejection of nine Bitcoin ETFs by the Securities and Exchange Commission.

The SEC announced on August 22 it would not approve proposals for the Exchange Traded Funds from ProShares, Direxion and GraniteShares.

In its reasoning to each exchange, the SEC said:

“…THE COMMISSION IS DISAPPROVING THIS PROPOSED RULE CHANGE BECAUSE … 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 went on to say discussions about the intrinsic value of bitcoin, the desire of individuals to invest in a bitcoin-based ETF and the ways in which approval of the proposal would increase investor confidence in cryptocurrencies had no relevace to the outcome.

“Ultimately … additional discussion of these tangential topics is unnecessary, as they do not bear on the basis for the Commission’s decision to disapprove the proposal,” the statement said.

The rejections follow a decision by the SEC last month to reject an ETF from Tyler and Cameron Winklevoss.

At the time, one SEC Commissioner expressed he opposition to the decision of her colleagues.

You can read the SEC’s full statement here:

https://www.sec.gov/rules/sro/nysearca/2018/34-83912.pdf