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“The ETF Did Not Meet the Necessary Requirements”- SEC

US SEC rejects Bitwise Bitcoin ETF proposal.

On the contention that the ETF (exchange-traded fund) documenting from Bitwise Asset Management and NYSE Arca didn't meet the fundamental prerequisites, the United States Securities and Exchange Commission (SEC) dismissed a proposal to list a Bitcoin (BTC) ETF.

The announcement came on Oct. 9, where the regulators expressed that the said applicants didn't meet the vital prerequisites with respect to conceivable market manipulation and illicit activities.

The SEC stated: "Rather, the Commission is disapproving this proposed rule change because, as discussed below, NYSE Arcahas not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section6 (b) (5), and, in particular, the requirement that the rules of a national securities exchange be’ designed to prevent fraudulent and manipulative acts and practices.'

The choice by the SEC contradicts the recent remarks from Matt Hougan, managing director and global head of research at Bitwise, who on CNBC on Oct. 7 stated, “We’re closer than we’ve ever been before to getting a Bitcoin ETF approved.”

Hougan had been idealistic about the 'firm's chances to land approval' for a physically-held Bitcoin ETF and he likewise noticed the huge development that has transpired in the crypto space as of late. 

The dismissal of Bitwise's proposition pursues a series of deferrals and solicitations for input from the SEC, and now its decision on the proposition has been additionally delayed by the regulator — together with two other crypto ETF applications — until Oct. 13.

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