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SEC Rejects Application For Bitcoin Spot ETF From WisdomTree

The US Securities and Exchange Commission did not approve the launch of a bitcoin exchange-traded fund (ETF) from WisdomTree. This year, the regulator has already postponed the decision several times.

According to
a statementThe US Securities and Exchange Commission has rejected a change to the Cboe BZX exchange rules for listing and trading shares of the cryptocurrency fund WisdomTree. In particular, the SEC said that any change in the rules for ETF approval will not be “aimed at preventing fraudulent, manipulative actions and protecting investors and the public interest.”

The US Securities and Exchange Commission concluded that the BZX platform did not meet the requirements for listing a financial product in accordance with the regulations, stating that the proposed Bitcoin ETF would prevent the SEC from obtaining the information it needs to detect, investigate and prevent fraudulent schemes. violations of exchange rules and federal securities laws.

According to the Commission, BZX did not provide enough data to conclude that the cryptocurrency market is resistant to manipulation. BZX used the examples of cryptocurrency futures products on the CME Group as an argument, but the SEC rejected them.

“The Commission cannot draw a conclusion based only on BZX statements. In the absence of any evidence to support BZX, it is unlikely that ETP trading will have a predominant impact on prices in the bitcoin futures market, ”it said in a statement.

Since the initial filing with the SEC on March 26, the decision has been delayed several times. The reason for WisdomTree’s failure is similar to that given for the VanEck ETF in November.

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