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SEC Rejects Another High-Profile Bitcoin ETF Proposal

Another high-profile proposal for a bitcoin exchange-traded fund (ETF) has been denied by the U.S. Securities and Exchange Commission (SEC). The agency, however, emphasized that the disapproval was not based on whether bitcoin has utility or value as an innovation or an investment. Shares of the Bitwise Bitcoin ETF Trust were to be listed on the NYSE Arca exchange.

Also read: IRS Issues New Crypto Tax Guidance After 5 Years – Experts Weigh In

SEC Rejects Bitwise’s Bitcoin ETF

The SEC issued an order disapproving another high-profile bitcoin ETF on Wednesday. NYSE Arca Inc. originally filed a proposed rule change to list and trade shares of the Bitwise Bitcoin ETF Trust with the agency on Jan. 28. In its order, the SEC wrote:

The Commission emphasizes that its disapproval does not rest on an evaluation of whether bitcoin, or blockchain technology more generally, has utility or value as an innovation or an investment.

SEC Rejects Another High-Profile Bitcoin ETF Proposal

The agency clarified that the proposal was disapproved because the NYSE Arca exchange has not shown that its proposal is consistent with “the requirements of Exchange Act Section 6(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.'”

Bitwise’s Response

Following the SEC’s order, Bitwise Asset Management issued a statement in response. Global Head of Research Matt Hougan said, “We deeply appreciate the SEC’s careful review,” adding:

We look forward to continuing to productively engage with the SEC to resolve their remaining concerns, and intend to re-file as soon as appropriate.

Noting that “the bitcoin market itself has evolved in important and positive ways in recent years,” he outlined a number of noteworthy developments. Among them are the

Read more from our friends at Bitcoin.com