Bitcoin ETF, in turn, tracks Bitcoin as the underlying asset. It is an indirect way of purchasing BTC, where the investor only holds the corresponding security without having to store the actual coins. If listed on a regulated US exchange, it could pave the way for large mainstream investors, potentially pushing Bitcoin toward broader recognition on Wall Street.
Explaining its decision to deny the proposals, the SEC cited the Bitcoin futures as ‘insignificant’ in size, and the possibility of ‘fraudulent and manipulative acts and practices’, among other factors, in all of the three refusals:
“The Exchange has offered no record evidence to demonstrate that Bitcoin futures markets are ‘markets of significant size.’ That failure is critical because, as explained below, the Exchange has failed to establish that other means to prevent fraudulent and manipulative acts and practices will be sufficient, and therefore surveillance-sharing with a regulated market of significant size related to bitcoin is necessary.”