The US Securities and Exchange Commission (SEC) yesterday rejected the proposal submitted by BitWise to launch a Bitcoin based exchange traded fund (ETF) to be available to a wide range of investors. The regulator cited that the proposal was not “designed to prevent fraudulent and manipulative acts and practices”.
This is the latest such application for the creation of a digital asset based ETF that has been rejected by the regulator, while over a dozen applications for such funds have never even made it to the regulator’s desk for consideration. Not all is lost though, as the SEC has until Monday, October 14th to provide a decision on the Bitwise Asset Management BTC Exchange-Traded Fund (ETF) application. Industry experts believe that the approval for such a fund is nowhere close to being a reality. This may be due to the fact that the SEC has been working of setting up an internal oversight department to handle digital assets for some time and perhaps this group will handle such request going forward.