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The U.S Securities Exchange Commission ( SEC) rejects latest attempt on Exchange- traded fund( ETF) creation.

 

 

The U.S. Securities and Exchange Commission (SEC) has rejected bitcoin ETF creation.  The latest attempt on the creation of a bitcoin exchange-traded fund (ETF) has ultimately being rejected by the U.S Securities  Exchange Commission.

On Wednesday all bitcoin ETF proposals will be rejected by SEC in the continued manner,  announcing that a filing done by Bitwise Asset Management and NYSE Arca did not meet the legal requirements to prevent market manipulation or other illicit activities.
 
The order reads:

NYSE Arca has not met its burden under the Exchange Act and also inclusive is the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), particularly  the requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices, therefore, the Commission is disapproving this proposed rule change. "

Based on discussions so far, Bitwise  kicked off its most recent push to offer retail customers a regulated bitcoin product, this was  after it  first filed the ETF proposal with NYSE Arca in January 2019.

Notably, the  company ought to be the first firm to launch an ETF in the U.S., alongside competitor VanEck, who pulled its version last month also filed a similar proposal in January with Cboe BZX and  SolidX.

SEC’s  rejection of  all bitcoin ETF proposals has given reasons from market manipulation and fraudulent activity concerns.

Though Bitwise tried to reassure the regulator by publishing a number of reports show casing what it saw as the “real” bitcoin market and showing that market activity corresponds  tightly with the regulated bitcoin futures markets as a way to prove further that it could address these issues.

 
Credits: Nikhilesh De

 

 

 

 

 

 

 

Florence Anusionwu


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