Global Exchange: The US Securities and Exchange Commission has dismissed Bitwise’s new bitcoin Exchange-Traded Fund proposal.
Bitwise Asset Management registered the latest ETF program in association with NYSE Arca stock exchange. The SEC stated the proposal did not satisfy legitimate conditions to prevent illegal activities in markets.
Due to illicit undertakings and manipulation by markets, the SEC has turned down all proposals of bitcoin ETF so far.
The order stated, “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 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.'”
According to Cryptonews, Bitwise was the first company to introduce an ETF in the US along with VanEck, an investment management firm. The latter had filed an analogous proposal with the companies Cboe BZX and SolidX. VanEck took out its report in September.
Bitwise attempted to convince the regulatory body that concerns about deceitful activities could be discussed. The firm presented statements on the "real" bitcoin market and how their operations are strongly related to the bitcoin exchange futures.
The SEC has one bitcoin ETF proposal, registered by NYSE Arca and Wilshire Phoenix, after the dismissal on Wednesday