SEC Quashes More Bitcoin ETF Pitches in Another Blow to Crypto

The SEC's resistance to crypto ETFs has taken a toll on Bitcoin's price this year. But the earlier ruling had been widely viewed as a bad sign for remaining proposals — sapping some of the surprise from Wednesday's decisions. After plummeting more than 50 percent this year, the top cryptocurrency rose about 1 percent in early trading on Thursday in New York to around $6,400.

"The commission emphasizes that its disapproval does not rest on an evaluation of whether Bitcoin, or blockchain technology more generally, has utility or value as an innovation or an investment," the regulator wrote Wednesday. Rather, it disapproved because "the exchange has not met its burden."

There's now just one Bitcoin ETF awaiting a decision from the regulator on whether it can list. The SEC has pushed back a ruling on that product — from VanEck Associates Corp. and SolidX Partners Inc. — until at least September, and could ultimately take through February to make up its mind.

While the denied ETFs all planned to use futures, VanEck's fund would be directly backed by Bitcoin. Analysts see it as having more chance for approval because it plans to start with a high minimum share price to discourage retail investors, and would be insured.