The US Securities and Exchange Commission (SEC) rejected a joint application by Bitwise Asset Management and NYSE Arca to launch traded exchange-traded funds (ETFs) linked to bitcoin.
The regulator believes that the proposed change in the rules does not meet the requirements for combating market manipulations. At the same time, the main blame for the SEC was laid on NYSE Arca, and not Bitwise.
“The Commission does not approve the proposed amendment of the rules, since NYSE Arca has not complied with the requirements of the Exchange Act and has not demonstrated compliance of its application with the requirements of article 6 part b, clause 5 of the Exchange Act. Also, the application does not meet the requirements for the prevention of fraudulent and manipulative actions, ”the SEC statement said.
Recently, the head of research at Bitwise, Matt Hougan, said that their application for the launch of an ETF for bitcoin, which arrived at the SEC in January this year, will be approved in the near future.
Note that, at the moment, the Commission has not approved any application for ETFs for bitcoin. At the same time, the SEC’s refusal to approve the Bitwise application did not affect the price of bitcoin – on the contrary, the rate of the first cryptocurrency grew by 4.8% over the past 12 hours.