The US financial regulator rejected the application of Bitwise and NYSE Arca to launch Bitcoin-ETF.
SEC representatives explained that the tool proposed by the companies does not comply with legal standards to prevent manipulation in the market, as well as other illegal activities.
Recall that Bitwise, together with the NYSE Arca, filed an application with the SEC in January. On the eve of the Bitwise spokesman, Matt Hoogan, announced that the company is close to the Commission's approval of the application for the BTC-ETF as never before. He was sure that the regulator would have enough of the changes in the crypto industry that had occurred over the past two years, as well as the company's own developments in order to give the green light to launch the proposed tool. However, the SEC decided otherwise.
Another proposal for a similar product, proposed by VanEck and SolidX, was withdrawn back in September. At the moment, the regulator does not have any applications pending that are directly related to the flagship cryptocurrency. Now you should wait for a decision on the application from Wilshire Phoenix, which intends to include not only BTC, but also US Treasury securities in the basket – this supposedly will reduce volatility.
