The US Securities and Exchange Commission (SEC) has just rejected Bitwise Asset Management's proposal to launch a bitcoin ETF. The application had been filed in collaboration with NYSE Arca.
The SEC says this new investment tool does not comply with laws aimed at fighting market manipulation and other illegal activities:
"The Commission is disapproving this proposed rule change because, as discussed below, 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, and, in particular, the requirement that the rules of a national securities exchange be 'designed to prevent fraudulent and manipulative acts and practices'."
Bitwise and NYSE Arca submitted an application to launch a bitcoin ETF in January. VanEck and SolidX withdrew a similar proposal in September.
Last month Bitwise tried to convince the SEC about the fact that this new investment instrument is safe. In a presentation delivered in September, Bitwise said the bitcoin spot market had "materially improved" and become "efficient" in the past two years. However, the SEC was not convinced and still fears the market might be manipulated.
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