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Two US fund companies shelved bitcoin ETF proposals, due to the SEC expressed concern

According to Reuters, the two U.S. companies shelved their offer of launching the Bitcoin Exchange Traded Funds (ETFs) because of concern expressed by the Securities and Exchange Commission (SEC).

According to a document, the regulator's staff expressed concern about the liquidity and valuation of futures contracts based on such digital assets.

This is undoubtedly bad for cryptocurrency investors and has caused two U.S. financial regulators to openly disagree on how to regulate digital money.

It is learned that the trust controlled by Rafferty Asset Management LLC and the Exchange Trading Concepts Company all canceled the plan to launch the Bitcoin Exchange Traded Fund. Neither company has commented.
Earlier, a fund manager said the ETF proposals are expected to be approved on the grounds that the CFTC approved CME and CBOE on-line bitcoin futures last month.

It is reported that the SEC in charge of the fund, while the United States Commodity Futures Trading Commission (CFTC) is responsible for trading futures contracts.

Bitcoin is a virtual asset that can be quickly and semi-anonymously moved around the world without the involvement of a central authority such as a bank or government. Currently, bitcoin transactions are expensive and their prices are volatile.

The current SEC is facing tremendous pressure, assuming that its bitcoin ETF, which cleared the way for the cryptocurrency market, may impact the US stock market.

Neither the SEC nor the CFTC commented on the matter immediately.