ProShares ETF proposal rejected by SEC
The SEC denied the proposed ProShares ETF . The announcement was on expected lines and mentioned in my previous post too.
The ProShares ETF in it current form and specification is inherently different from the VanEck ETF.
The VanEck ETF still remains as the ETF with the best chance of succeed in getting listed.
As the Investment Company Act of 1940 suggests "an ETF must hold its underlying assets with a third-party". VanEck maintains that its ETF will not invest in physically-settled BTC futures contracts — thereby maintaining all custodial legality.
They will own bitcoin to back the ETF.
The ProShares ETF proposals however are backed by bitcoin futures contracts, rather than any physical holdings of bitcoin itself. Given the volatility of bitcoin itself tt really never had a shot of being approved by the SEC .
Read more from the SEC here: https://www.sec.gov/rules/sro/nysearca/2018/34-83912.pdf
On the back if this new, bitcoin has remained volatile and it seems a safe bet to sit aside on the bylines .
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