The US Stock Exchange Rejected the Bitcoin ETF Again!
The US Securities and Exchange Commission (SEC) rejected Wilshire Phoenix’s request for a Bitcoin exchange-traded fund (ETF) license.
Due to the coindesk report, the US Securities and Exchange Commission has claimed that Wilshire Phoenix has failed to convince them that Bitcoin prices are sufficiently resistant to market manipulation. Wilshire which has recently entered the financial services industry, for the first time last summer, and in partnership with NYSE Arca, applied for a Bitcoin ETF license.
The case report released by the Stock Exchange Commission says:
“The Commission has concluded that the NYSE Arca has failed to comply with the Exchanges and stock exchange procedure rules and, consequently, their request is not in accordance with the requirements of paragraphs 1 and 2 of the Exchange Act. Also, in this particular case, their request contradicts the rules adopted by the Commission to prevent counterfeiting, market manipulation and the protection of investors and the public interest.
Bitcoin ETF News | Bitcoin ETF Approval
Commissioner Hester Pierce, dubbed the “mother of crypto” for his support of the cryptocurrency business, said in a statement opposing the decision, claiming that the commission had tightened standards on Bitcoin ETF. For example, Pierce believes that given the size of the Bitcoin market, there is no need to apply stock regulatory rules to the fund. However, this was one of the reasons for Bitwise’s refusal to authorize Bitcoin ETF
Pierce acknowledged this:
This level of opposition of the commission with the Bitcoins ETF makes me conclude that the Commission is reluctant to endorse any product that facilitates access to the Bitcoins market. If no change is made to the standards that the Commission insists on applying to the Bitcoin market, no entity will be able to obtain such a license.
To date, the Stock Exchange has rejected all requests to obtain Bitcoins ETF. Wilshire was hoping to complete this by submitting his application to the US Treasury Department. William Herrmann, Wilshire’s chief executive, said in an interview earlier that in response to the Bitcoins fluctuations, this fund would balance the market itself. This means that in the case of high volatility, the fund will invest more of its assets in equities and the trend will reverse when Bitcoin prices balance.
The creation of this automatic equilibrium mechanism was a response to the earlier objections of the Stock Exchange. The Exchange Commission had earlier rejected several applications for Bitcoin ETF licensing under the pretext of the Bitcoins market being small and the ease of manipulating the market.
Last year, the commission also rejected a request from the management company “Bitwise Asset” to grant ETF funding.
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