Nine Bitcoin-based exchange-traded fund (ETF) applications got the thumbs down from the Securities and Exchange Commission on Wednesday, preventing the digital currency from gaining more acceptance from investors who are wary of the unregulated exchanges of cryptocurrencies. The SEC’s Division of Trading and Markets rejected applications from investment firms ProShares, Direxion and GraniteShares.
In an attempt to fall under the governmental regulation of the SEC, the cryptocurrency industry has been unable to bring this into fruition, starting with the Winklevoss Capital Management founders Cameron and Tyler Winklevoss, which was rejected twice.
The SEC stated, “Among other things, the Exchange has offered no record evidence to demonstrate that bitcoin futures markets are ‘markets of significant size.’ That failure is critical because, as explained below, the Exchange has failed to establish that other means to prevent fraudulent and manipulative acts and practices will be sufficient, and therefore surveillance-sharing with a regulated market of significant size related to bitcoin is necessary.”
Related: Bitcoin Bounce Ignites Talk of Another Comeback
As of now, Bitcoin bulls are hoping to see the digital currency break out its current $6,000 support levels after it dipped slightly below the $6,000 mark in recent days, but has risen slightly over 6% since. Bitcoin’s current price stands at $6,463.39 as of 11:50 a.m. ET–down 2.19% the past 24 hours.
The leading digital currency reached a high of $20,000 late last year, but has since fallen over 60%. Technical analysts are closely watching whether the digital currency can break through its current price levels–specifically, a move past a resistance level of $6,800 could signal another bullish trend.
Bitcoin ETN Available to Investors
Despite the struggles with Bitcoin ETF coming to the market, an exchange-traded note (ETN) is available that uses the leading digital currency as its underlying asset. Per a Bloomberg report, American investors now have access to Bitcoin Tracker One and BTC ETN.
The investment product will be available under the “CXBTF” ticker symbol and will be quoted in U.S. dollars. The clearing and settlement of the trade will be available in the Krona and Euro since the product is listed and regulated in Sweden. The ETN is issued by XBT Provider, which is a subsidiary of CoinShares.
Meanwhile, the US Securities and Exchange Commission postponed their decision on a bitcoin ETF until late September. The ETF filing by investment firm VanEck and blockchain technology company SolidX could help reticent investors adopt Bitcoin as a legitimate investment opportunity if approved.
Related: Bitcoin ETF Delay Reveals Weak Traders
For more information on the cryptocurrency market, visit the Bitcoin category.