The US Securities and Exchange Commission has rejected Fidelity’s application to launch a cryptocurrency ETF called Wise Origin Bitcoin Trust.
According to
statement The SEC has opposed proposed changes to the Cboe BZX exchange’s rules for listing and trading shares of Wise Origin Bitcoin Trust. The Commission clarified that these changes do not comply with the requirements of section 6 (b) (5) of the US Exchange Act, providing a similar reason for the refusal of VanEck, Valkyrie and Kryptoin, which also applied to launch cryptocurrency ETFs. Last week, First Trust Advisors and SkyBridge received a refusal from the department.
The SEC added that any changes to the Cboe BZX rules for approving crypto-pegged ETFs would not be designed to prevent fraud and market manipulation, nor would they protect the interests of investors. According to the regulator, Cboe BZX did not provide convincing explanations of how the exchange will be able to prevent manipulation of the bitcoin exchange-traded fund.
Although the SEC has yet to approve any ETFs with direct access to cryptocurrencies, in the fall it allowed the launch of bitcoin futures ETFs. In October, this new investment product was launched in the US by ProShares, followed a few days later by Valkyrie.
Many analysts hope that the SEC will approve bitcoin spot ETFs in the next few years. Rick Edelman, founder of Edelman Financial Engines, a consulting firm, says the Commission is giving the same reasons for refusing companies to launch the product and has run out of arguments.
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