SEC Rejects Bitwise Application for Bitcoin ETF
According to a 112-page document published on October 9, the regulator decided to “disapprove”. The main subject of the dispute was the applicants' inability to convincingly prove that the cryptocurrency investment market is free from fraud and manipulation.
The document states the following:
“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, in particular, the requirement that the rules of a national securities exchange be “designed to prevent fraudulent and manipulative acts and practices.”
Bitwise's failure follows the principles previously applied in rejecting the Winklevoss’ Bitcoin ETF, the SEC also said. Bitwise, in turn, does not see the solution as a final “rejection." The company welcomes the decision as “productive step in the journey toward a regulated crypto-ETP,” adding also:
“We’re committed to continuing to engage with the SEC to provide the data & analysis that shines light on the industry and its progress.”