Crypto market slashed 4% amid SEC’s rejection of 3 ETFs

Aug 23, 2018 at 23:31

The crypto market thinned as the United States’ Securities and Exchange Commission (SEC) announced it thumbed down proposals for the exchange traded funds (ETFs) from ProShares, Direxion and GraniteShares.

During the day, Bitcoin plunged over 4% from $6,800 and tested the support at $6,250 before bouncing back above $6,400, according to the FXStreet.

The regulator published on August 22 the orders, putting its disapproved ETFs to nine since the first attempt by the Winklevoss brothers—by now, already rejected twice—four years ago.

The body said it disapproved the proposed rule change because the ETFs all failed to meet SEC’s requirement under the ‘Exchange Act and the Commission’s Rules of Practice’, particularly that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices.

“Its disapproval does not rest on an evaluation of whether bitcoin or blockchain technology more generally, has utility or value as an innovation or an investment,” the regulator added on its rejection.

The announcement comes after it rejected the Winklevoss’ brothers ETF proposal last month.

Aside from Bitcoin’s slump, the trading volume also suffered as it dipped below $4 billion, removing the gains raked in the previous trading day.