Bitcoin News

Bitcoin’s Latest ETF Proposal Faces Rejection From SEC

The United States Securities and Exchange Commission (SEC) announced on Wednesday, October 9, that it has disapproved a proposal filed by Bitwise Asset Management in conjunction with the trading venue NYSE Arca, to create a Bitcoin ETF. The SEC rejected the proposal as it did not meet the legal requirements, to prevent illicit activities or market manipulation.

The decision from SEC comes as a surprise to the crypto community. Earlier, Matt Hougan, the MD and global head at Bitwise, seemed quite optimistic and was quoted saying, “We’re closer than we’ve ever been before to getting a Bitcoin ETF approved.”

However, the SEC did not put the blame solely on Bitwise. Instead, it put the burden on NYSE Arca by saying that NYSE did not comply with the requirements set by the SEC, under section 6 (b) (5) of the Exchange Act, designed to prevent fraudulent and manipulative practices. This echoes the concerns of Jay Clayton, the Chairman of SEC who said, “Bitcoin trades on largely unregulated markets and Bitcoin custodial offerings might not be ready for institutional use.”

Bitcoin has witnessed a fall in its price by as much as 20% of its value in the last three days. However, this failure did not seem to discourage Bitwise and it confirmed that it will keep knocking SEC. The SEC, on the other hand, announced that it will welcome such offerings in the future, even if not immediately.

Gerald Butler

Gerald has been engaged in the financial markets since 2005. He is double graduate with economics and social communication. In his initial career years, he worked as a news writer and later as an analyst in a foremost financial firms. After joining CryptoInvoke, he is working as a news editor covering cryptocurrency news with latest trends and analysis.

Recent Posts

The evolution of peer-to-peer rewards in Crypto networks

The history of peer-to-peer (P2P) rewards in crypto networks has been one of the most…

4 months ago

The sustainability of Bitcoin and its impact on the environment

Bitcoin, the oldest and most popular cryptocurrency in the world since its 2009 beginning, has…

5 months ago

How are emerging technologies transforming games of chance?

Games whose outcome is purely based on chance are clustered under “games of chance.” Their…

5 months ago

What are Binance’s strategies for capturing the gaming market?

Binance is a major crypto e­xchange. It offers many digital currencie­s for trading. Binance is…

5 months ago

Unlocking Crypto’s power: why you should embrace blockchain for next-level transactions!

Blockchain changes how we do transactions. It makes the­m more secure, transpare­nt, and efficient than…

6 months ago

How NFTs revolutionize fan engagement in the world of sports

The world of sports has always been a global sensation, but thanks to technological advancements,…

6 months ago