All investors who believed that the US Securities and Exchange Commission (SEC) would ultimately agree to Exchange Traded Funds based on the main cryptocurrency must feel a disappointment today.
Earlier, the Winklevoss brothers tried to set up a BTC-based investment fund. Now the SEC rejected 9 applications, including ProShares, GraniteShares and Direxion.
Why does not the SEC trust BTC?
The Commission has given, this time, the same reason as earlier if the Winklevoss brothers rejected the application. SEC does not trust the cryptocurrency market. Expresses its concern about the scams and manipulations that occur with the Bitcoin course.
Interestingly, the committee’s decision was not at all unanimous. For the creation of ETFs, Hester M. Pierce, a member nominated on behalf of the Republicans in January this year, put in a word. Her support for the funds was so great that after the announcement of the decision she published an open letter in which she criticized the decision of the other members of the SEC. Below is its fragment:
“The historic Commission’s mission has always consisted and should consist in ensuring that investors have the information they need to make intelligent investment decisions, and that the rules that govern a given exchange market are structured in such a way that they ensure transparency and prevent manipulations in the process of mutual interaction between market participants. The Commission goes beyond this limiting [seemingly] role when it focuses instead instead on the quality and the characteristics of the underlying markets that a given exchange wants to include in trade. ”
What’s next with the price?
Of course, the decision of the SEC may be the reason for possible decreases in the BTC exchange rate. Supporters of cryptocurrencies have long been trying to create this type of fund. Many counted on the final positive decision of the commission, if only because of the earlier introduction of bitcoin-based futures into the market.
We can be sure that people interested in ETFs will not be idle and will probably continue to try to create them. The introduction of bitcoin-based funds would certainly be the reason for the next boom in the cryptocurrency market, because it would increase the credibility of digital currencies and attract many institutional clients to the market.