SEC decides against Bitwise bitcoin ETF

Posted 10 October, 2019

The US Securities and Exchange Commission has expectedly declined one more application for bitcoin ETF. The announcement was made on October 9.

This time the regulator rejected the application filed by Bitwise Asset Management and NYSE Arca citing that this product fails to comply with the requirements to the measures against market manipulations and illegal activities. 


"NYSE Arca has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), and...proposed rule change SR-NYSEArca-2019-01, as modified by Amendment No. 1, is disapproved," reads the report.

Despite all provided arguments and ways how to solve price manipulation and fraud issues, SEC stated that it had not received convincing facts on this matter.
 
For reference, the application was submitted back in January. NYSE Arca requested a rule change to become able to list shares of Bitwise Bitcoin ETF Trust. As a result, Bitwise joined the list of the companies that got a negative decision from the SEC.

Earlier, VanEck and SolidX withdrew a similar application of bitcoin ETF. As a result, SEC has no active bitcoin-ETF applications for consideration by now. At the same time, Wilshire Phoenix is still waiting for the final determination of its request. Notably, the company proposed an ETF that would include not only bitcoin but also US treasuries.

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