US SEC rejected SolidX BItcoin ETF approval appliacaton
United States Securities Exchange Commission rejected another Bitcoin ETF proposal application filed by SolidX.
Earlier this month the US SEC also rejected a similar Bitcoin ETF application filed by the Winklevoss twins.
It is a second Bitcoin ETF application that has been rejected by US SEC.
Reasons for Rejection
The US SEC rejected the approval of the SolidX ETF for the same reasons as it mentioned while rejecting the Winkleovss twins Bitcoin ETF application.
It stated the fact that Bitcoin is not able to be regularized and it lacks investor protection.
Bitcoin is basically a digital peer-to-peer centralized crypto currency that isn’t controlled by any central authority and thus is mostly used in unregularized market.
Hence, for an ETF provider, it is next to impossible to agree to surveillance and sharing agreements that is needed while applying for ETF, in case of decentralized financial system. It is difficult to track the origin and flow of Bitcoin transaction unlike in the case of existing centralized Financial markets.
Future of Bitcoin ETF
After witnessing current scenario and multiple rejections by SEC, the introduction of Bitcoin ETF’s seems to be unlikely. SEC wants regularization and strict investor protection policies, which the ETF provider cannot adhere to simply because of the nature of Bitcoin.
Only time will tell the fate of Bitcoin’s ETF. Till then Bitcoin and it’s users does not bothers about it and neither Bitcoin’s price shows any lack of interest from the Bitcoin Community. The price level are stable and is expected to grow in the long run.