WASHINGTON—The U.S. Securities and Exchange Commission (SEC) has denied a second bitcoin-based ETF bid, which was up for consideration in March.
The decision—levied against the Intercontinental Exchange, Inc.’s NYSE Arca exchange, which requested to list and trade the SolidX Bitcoin Trust—is another blow to bitcoin legitimacy, Pymnts.com noted.
“Once again, the lack of oversight, regulation and the potential for fraud in the broader bitcoin space worked against the proposed ETF,” Pymnts.com stated.
In its latest ruling, the SEC mirrored the language used in their previous denial, once again referring to Section 6(b)(5) of the Exchange Act, which “requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest,” reported Pymnts.com.
The SEC still sits on one remaining bitcoin ETF proposal — Grayscale Investments LLC’s Bitcoin Investment Trust, which filed with the SEC to have its trust listed on the NYSE back in January, seeking to launch with some $500 million, Pymnts.com reported.