The United States Securities and Exchange Commission has turned down Bitwise’s proposal to launch a Bitcoin ETF. The SEC announced on the 9th of October that the ETF proposal from Bitwise did not meet essential regulations regarding probable market manipulations and unlawful activities.
The regulatory authority stated in a report that the company did not meet the set rule under the Exchange Act and the Commission’s Rules of Practice to prove that its proposal is in line with the regulations of Exchange Act section6(b)(5), and, specifically, that the proposal failed to meet the prerequisite that a national securities exchange be built in a manner that it deters defrauding and manipulative activities ad actions.
SEC Disproves Hougan’s Assurances
The disapproval from the SEC seems to be an aberration to the recent statements made by the Managing Director and Global Head of Research of Bitwise, Matt Hougan.
Hougan who was on CNBC on the 7th of October said that Bitwise was closer to getting a Bitcoin ETF approved now than ever before. Hogan had been confident about the possibility of the company getting its ETF product approved, using the growths that have been occurring in the cryptocurrency space over recent years as a pointer.
Other Let Downs By the SEC
Bitwise is not the only company seeking approval to launch an ETF product from the SEC. In January Bitwise alongside VanEck, SolidX and CBoE BZX all filled their proposals to the commission.
The disapproval by the SEC was preceded by a series of delays by the authorities. The most recent delay was in August when the commission postponed its verdict regarding the proposals from Bitwise along with VanEck, SolidX, and CBoE BZX, until the 13th of October. However, VanEck took down its product last month following poor reviews and adoption.
Bitwise has however assured the SEC that they are willing to reevaluate the issues raised by the regulatory body on market manipulation and fraudulent activities.
Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.