COIN ETF rejected

Tags: stories

Updated: 11 March, 2017

markets and etf

Price dropped but quickly bounced back to remain around 1100 USD.

Posted on 10 March, 2017

The decision came right after 4 PM Washington DC time.

The reasoning:

As discussed further below, the Commission is disapproving this proposed rule change because it does not find the proposal to be consistent with 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. The Commission believes that, in order to meet this standard, an exchange that lists and trades shares of commodity-trust exchange-traded products (“ETPs”) must, in addition to other applicable requirements, satisfy two requirements that are dispositive in this matter. First, the exchange must have surveillance-sharing agreements with significant markets for trading the underlying commodity or derivatives on that commodity. And second, those markets must be regulated.

It is about regulation therefore it is unlikely that neither SolidX ETF nor any other cryptocurrency ETF (like the Ethereum ETF) will be approved in near future.

Well good to see our taxpayer dollars hard at work. The reasons given for denial could have been done via a fax on day one.

Comment from discussion [Daily Discussion] Friday, March 10, 2017.