The United States Securities and Exchange Commission (SEC) has reiterated its disapproval of spot Bitcoin ETFs after rejecting another listing request from WisdomTree. The regulatory watchdog threw out a proposed rule change from the CBOE BZX Exchange to list shares of the spot Bitcoin Trust by WisdomTree.
The SEC explained that it rejected the ETF proposal on the grounds of lack of surveillance sharing agreements and the incapacity to prohibit fraudulent activities in the spot BTC market.
This rejection comes as no surprise to many as the regulator has postured itself as anti-spot BTC ETFs. WisdomTree first filed for an ETF approval in March this year. By April, the SEC published the application for public scrutiny and comments, stalling its decision on the proposed rule change.
The Commission argued that the approval of a proposed rule change from the CBOE BZX Exchange to trade shares of WisdomTree’s Bitcoin Trust would cause it to forfeit the protection of investors.
The SEC further asserted that the CBOE BZX Exchange has failed to meet its burden under the Exchange Act and the SEC’s Rules of Practice. The Commission explained that the proposed ETF would hinder the agency from detecting the information needed to monitor and investigate market manipulation or fraudulent acts.
SEC Remains Resolute Against Spot BTC ETF
The regulatory authority claimed that the CBOE BZX Exchange failed to provide sufficient backing on how it intends to prevent or monitor market manipulation, including wash trading and other risk factors.
Interestingly, the VanEck Bitcoin ETF also got rejected by the SEC for similar reasons, last month. Despite a booming demand for spot BTC ETFs, the regulatory authority remains resolute in its decision to prevent a listing.
To compensate for the numerous rejections of spot Bitcoin ETFs, the SEC has granted some ETFs tracking Bitcoin futures contracts since October. SEC Chair Gary Gensler has also restated support for futures-based Bitcoin ETFs.
You can purchase crypto coins here: Buy Tokens
- Broker
- Min Deposit
- Score
- Visit Broker
- Award-winning Cryptocurrency trading platform
- $100 minimum deposit,
- FCA & Cysec regulated
- 20% welcome bonus of upto $10,000
- Minimum deposit $100
- Verify your account before the bonus is credited
- Over 100 different financial products
- Invest from as little as $10
- Same-day withdrawal is possible
- Fund Moneta Markets account with a minimum of $250
- Opt in using the form to claim your 50% deposit bonus
Learn to Trade
Never Miss A Trade Again
Signal Notification
Real-time signal notifications whenever a signal is opened, closes or Updated
Get Alerts
Immediate alerts to your email and mobile phone.
Entry Price Levels
Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.