- The SEC rejected the ETF application due to concerns regarding market manipulation and a lack of surveillance-sharing agreements.
- So far, the commission has rejected at least nine Bitcoin ETF applications.
New York-based Wilshire Phoenix’s Bitcoin Exchange Traded Fund (ETF) application has been rejected by the US Securities and Exchange Commission. Ongoing issues regarding market manipulation and a lack of surveillance-sharing agreements were cited to be the reasons for rejection. Commissioner Hester Peirce aka “Crypto Mom,” has disputed the rejection publicly.
NYSE Arca had proposed a rule change, permitting the listing and trade of Wilshire Phoenix's United States Bitcoin and Treasury Investment Trust. The proposal, which included Bitcoin and US Treasury Bonds, was expected to address the SEC’s issues about market manipulation by automatically rebalancing into bonds during periods of BTC price volatility.
The SEC noted that the firm was not able to provide enough evidence that it can protect itself from “fraudulent and manipulative acts and practices” in the Bitcoin market “to protect investors and the public interest.” The agency added:
The Commission must disapprove a proposed rule change filed by a national securities exchange if it does not find that the proposed rule change is consistent with the applicable requirements of the Exchange Act — including the requirement under Section 6(b)(5) that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices.
So far, the commission has rejected at least nine Bitcoin ETF applications, including applications from Bitwise Asset Management, VanEck/SolidX and Direxion. Commissioner Peirce stated that the SEC had “once again disapproved of a proposed rule change that would give American investors access to Bitcoin through a product listed and traded on a national securities exchange subject to the commission's regulatory framework."
This line of disapprovals leads me to conclude that this Commission is unwilling to approve the listing of any product that would provide access to the market for Bitcoin and that no filing will meet the ever-shifting standards that this Commission insists on applying to Bitcoin-related products — and only to Bitcoin-related products.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
![Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC consolidates while ETH and XRP show some strength](https://editorial.fxsstatic.com/images/i/crypto-coins-1_Medium.png)
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC consolidates while ETH and XRP show some strength
Bitcoin (BTC) consolidated between $94,000 and $100,000 in the last nine days. Ethereum (ETH) and Ripple (XRP) prices stood relatively stronger and have gained nearly 3% and 7%, respectively, this week.
![Trump's US reciprocal tariffs pause fails to improve Bitcoin and crypto market outlook](https://editorial.fxsstatic.com/images/i/BTC-bearish-animal-1_Medium.png)
Trump's US reciprocal tariffs pause fails to improve Bitcoin and crypto market outlook
Bitcoin (BTC) and top cryptos halted their declines following a pause in President Donald Trump's reciprocal tariff plans, which were originally scheduled to go live on Thursday.
![Ripple vs SEC battle nears end as the regulator acknowledges Grayscale XRP ETF filing](https://editorial.fxsstatic.com/images/i/RIPPLE_Medium.png)
Ripple vs SEC battle nears end as the regulator acknowledges Grayscale XRP ETF filing
Ripple's XRP is up 4% in the early hours of Friday following the Securities and Exchange Commission (SEC) acknowledgment of Grayscale's 19b-4 filing to convert its XRP Trust to an ETF.
![200,000 New Investors Buy Ripple (XRP) 30-Days After Gensler’s Farewell: What Next for Stellar (XLM)?](https://editorial.fxsstatic.com/images/i/XRP-neutral-object_Medium.png)
200,000 New Investors Buy Ripple (XRP) 30-Days After Gensler’s Farewell: What Next for Stellar (XLM)?
Ripple (XRP) price consolidated around $2.40 on Thursday, up 11% since Monday, technical indicators suggest Stellar (XLM) has joined the rally.
![Bitcoin: BTC consolidates before a big move](https://editorial.fxsstatic.com/images/i/BTC-neutral-object_Medium.png)
Bitcoin: BTC consolidates before a big move
Bitcoin's (BTC) price has been consolidating between $94,000 and $100,000 for the last ten days, and, when writing on Friday, it hovers around $97,000. Despite this consolidation, US Bitcoin spot Exchange Traded Funds (ETFs) data recorded a total net outflow of $650.80 million until Thursday, hinting signs of weakness among institutional investors.
![The Best Brokers of the Year](https://editorial.fxsstatic.com/images/Brokers/Editors_Pick_Box_395x179_Medium.png)
The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.