I was thinking that it might get approved just based on the fact that bitcoin is accepted
more by institutional investors with the futures trading.
Judging by one of the reasons for the winklevoss rejection:
The order states that one of the major reason that the application was disapproved
is the fact that it couldn’t establish a means of compliance that bitcoin markets are
not subject to fraud or manipulation.
How will the CBOE application meet the above requirement?
Topic: Another bitcoin ETF gets rejection by SEC - page 3. (Read 482 times)
The main reason for the rejection is that they are not fully convinced that the market cannot be manipulated.
They also need to have guarantees that exchanges can be designed to prevent fraud and other manipulative acts.
The central factor for the Commission in its current consideration of the BZX proposal is whether it is consistent with Exchange Act Section 6(b)(5), 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.
Although BZX argues that its proposal can satisfy these requirements because Bitcoin markets are inherently difficult to manipulate, and because alternative means of identifying fraud and manipulation would be sufficient, the Commission concludes that, as discussed above, BZX has not established that these proffered means of compliance—alone or in combination—are sufficient to meet the requirements of Exchange Act Section 6(b)(5).
You can read the full 92-page report here:
https://www.sec.gov/rules/other/2018/34-83723.pdf
They also need to have guarantees that exchanges can be designed to prevent fraud and other manipulative acts.
Quote
The central factor for the Commission in its current consideration of the BZX proposal is whether it is consistent with Exchange Act Section 6(b)(5), 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.
Although BZX argues that its proposal can satisfy these requirements because Bitcoin markets are inherently difficult to manipulate, and because alternative means of identifying fraud and manipulation would be sufficient, the Commission concludes that, as discussed above, BZX has not established that these proffered means of compliance—alone or in combination—are sufficient to meet the requirements of Exchange Act Section 6(b)(5).
You can read the full 92-page report here:
https://www.sec.gov/rules/other/2018/34-83723.pdf
While the current volume of bitcoin futures on Cboe Futures Exchange and CME may not be enough to support ETP seeking 100% of the long or short duration of exposure to bitcoin, Cboe expects this volume to continue to increase. and in the near future reach similar levels to other commodity futures at the time they are introduced into the ETP
Saw the news flash. Not a very pleasant one. But Bitcoin will still reach target.
Two days after postponing the decision on Direxion’s Bitcoin (BTC) ETF Proposals and five other bitcoin ETFs filed by NYSE Arca, Inc, SEC has come vicious this time as it shattered the dream of Winklevoss twins of launching a bitcoin ETF. This is the second time in two years that Winklevoss twin’s application has been rejected.
Now all eyes will be on CBOE- SolidX Bitcoin ETF which should be next in line for SEC for approval. Although the precedents that the SEC is setting are not really positive, some experts still believe CBOE application is something that can get approved.
Reff: https://coingape.com/cboe-bitcoin-etf-holds-chance-sec-rejects-winklevoss-proposal/
Now all eyes will be on CBOE- SolidX Bitcoin ETF which should be next in line for SEC for approval. Although the precedents that the SEC is setting are not really positive, some experts still believe CBOE application is something that can get approved.
Reff: https://coingape.com/cboe-bitcoin-etf-holds-chance-sec-rejects-winklevoss-proposal/
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