Regulatory Series on Cryptocurrencies: Ray of Hope For Bitcoin ETF Disappears As SEC Declines Bitwise Proposal

Bitcoin has experienced bullish rout in 1st half of 2019, but the entire gamut of cryptocurrency has been struggling ever since the U.S. SEC (Securities and Exchange Commission) declined the various attempts of launching a bitcoin ETF applications.

The U.S. SEC has always kept cautionary eye on the crypto regulation, the regulatory agency (SEC), has constantly shown its meticulous approach by constantly denying the approval of applications filed by various renowned crypto-players like VanEck-SolidX, Cameron and Tyler Winklevoss, the reputed cryptocurrency investors and the founders of cryptocurrency exchange Gemini.

For now, Bitwise Bitcoin ETF proposal has been rejected. The US-SEC announced  on October 9th, that the commission stated that the ETF filing from Bitwise Asset Management and NYSE Arca is not complied by the necessary requirements. 

The SEC wrote: "Rather, the Commission is disapproving this proposed rule change because, as discussed below, NYSE Arca has 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 designed to prevent fraudulent and manipulative acts and practices.”

Hence, the ray of hope of bitcoin ETF that could be a silver lining for the entire cryptocurrency industry appears to be detrimental, as the US regulators stated that the applicants did not satisfy the necessary pre-requisites pertaining to potential market manipulation and illicit actions.