Reasoning Behind the ETF Rejection. Bitcoin again below 8000 dollors.

The Bats Exchange ETF, with the ticker symbol BXZ, was one of the first to submit an application to the SEC in 2017. When deciding on whether to accept a new ETF or alternative investment, the SEC follows Exchange Act Section 6(b)(5).

The main points from this regulation that the SEC considered for the BXZ ETF was whether the exchange had the ability “to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest.”

Regulators launched an investigation in May on whether bitcoin price movement was manipulated.

The points of contention, according to the SEC, was that bitcoin did not provide the safety against manipulation as an asset class and that the technology did not provide adequate tools for preventing fraud and money laundering. The complexities of blockchain technology required a rule modification to the Securities Exchange Act. The burden of evidence for a rule change fell on the applicants.