US SEC Rejects Bitwise Proposal to List Bitcoin ETFBy Oct 10, 2019 2 Min Read
The United States Securities and Exchange Commission (SEC) has rejected a proposal filed by Bitwise Asset Management to list a Bitcoin (BTC) exchange-traded fund (ETF).
On Wednesday, the US SEC finally made a decision on the Bitcoin ETF filing by Bitwise and NYSE Arca, stating that the applicants did not meet the necessary requirements pertaining to possible market manipulation and illicit activities, and thus rejected the rule change.
The Sec offered the following explanation, “The Commission is disapproving this proposed rule change because, as discussed below, NYSE Arca has not met its burden under the Exchange Act and 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 and practices.”
Bitcoin ETF Unwarranted Optimism
The response from the SEC appears to be in stark contrast to Bitwise’s Managing Director and Global Head of Research, Matt Hougan’s recent display of optimism on Oct.7 when he commented, “We’re closer than we’ve ever been before to getting a Bitcoin ETF approved.”
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