SEC Rejects New Bitcoin ETF Application
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The US Securities and Exchange Commission (SEC) has just rejected Wilshire Phoenix's application to launch an exchange traded fund (ETF) linked to Bitcoin. The SEC currently has no active applications to launch Bitcoin ETFs.

According to the regulator, Wilshire has not been able to prove the Bitcoin market is sufficiently protected from market manipulation:

"The Commission concludes that 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 and to protect investors and the public interest."

We should take into account the regulator has not yet approved any of the numerous applications to launch a Bitcoin ETF. Wilshire has tried to convince the SEC by including US government bonds apart from Bitcoin in the ETF basket. According to the company, the fund will be automatically balanced based on the volatility Bitcoin.

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