Three separate orders published by The U.S. Securities and Exchange Commission (SEC) on the 22nd of August revealed that the commission has rejected nine application. Therefore from three different sources to list and trade Bitcoin exchange-related Funds (ETFs).

The orders beat the August 23 deadline for a pair of Bitcoin ETFs that was submitted by Proshares with supports from NYSE Arca which is the first all-electronic exchange in the U.S. Apart from the Proshare’s pair, seven other application were rejected.

Direxion had five of its proposed ETFs rejected and two proposals from Graniteshares for listing on the Chicago Board of Exchange (CBOE) was denied. SEC stated on all the orders that the rejection was prompt by the inability of the exchange. Thus, to meet some of the requirements listed under the Exchange Act and the Commission’s rules of practice.

In particular, the SEC claimed that the proposals were not consistent with the requirements of the Exchange Act Section 6(b)(5), which requires that a National Security Exchange’s rule is to prevent manipulative and fraudulent acts and practices.

The SEC order to deny Proshare’s two ETFs pointed out that the Exchange had offered no concrete evidence that Bitcoin”s future market will grow considerably in size. It further explained that the lack of record evidence from the Exchange to demonstrate this. Also, its failure to design a means to prevent fraudulent practices. It has warranted the need for surveillance sharing with a regulated market related to Bitcoin.

However, the publication did not fail to point out that the rejections were not dependent on the evaluation of bitcoin’s value or utility as an innovation or investment.

SEC’s Rejection History with Bitcoin ETF

In March 2017, the commission rejected a Bitcoin ETF application from the Winklevoss Twins. Accordingly it was by another rejection of the re-application made by the same Exchange. In the rejection publication released in July, the commission argued that its records do not support the claim made by Winklevoss Twins. However that crypto markets are uniquely resistant to manipulation.

There was also a delay in the commission’s delay regarding two Bitcoin applications from Vaneck and SolidX. The commission’s history of Bitcoin ETF rejections has continued to indicate its position of concern for the cryptocurrency exchange market.