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SEC Rejects Application To Launch Bitcoin ETF Once Again


The United States Securities and Exchange Commission (SEC) did not approve the Bitcoin ETF application submitted by Bitwise in conjunction with NYSE Arca. The experts explained their decision by the fact that the application does not meet the requirements of the legislation aimed at preventing market manipulation and other illegal actions.

Note, that the main claims of the SEC were not addressed to the application itself, but to the compliance of the NYSE Arca with several laws, the observance of which is mandatory for the approval of Bitcoin ETF.

MD & Global Head of Research at Bitwise, Matt Hougan, believes that the digital asset market is now more than ever getting approval for the launch of Bitcoin ETF. The expert shared this opinion in an interview with CNBC.

Six days later (October 13), there will be a deadline for experts of SEC to issue a decision on the application for the Bitwise and NYSE Arca teams to launch Bitcoin ETF. In anticipation of an important date, company representatives have attracted BNY Mellon Bank to promote their initiative. Recall that the financial organization was engaged in the organization of control of private keys of the Bakkt crypto platform, which was launched on September 23.

Meanwhile, users note that constant promises of Bitcoin ETF approval over the past few years have bored them. Note, that recently the SEC Chairman Jay Clayton expressed doubts about the readiness to approve Bitcoin ETF soon. The specialist explained his vision of the situation by the presence of some questions regarding the financial instrument. In particular, Jay Clayton noted that, in his opinion, there is currently no reliable custodian in the digital asset market. The crypto community suggested that with the launch of Bakkt, issues regarding the lack of custodian from the SEC will be resolved.

Matt Hougan believes that at the moment, many of the problems that previously hindered making a positive decision to launch Bitcoin ETF have already been eliminated. The specialist noted that the approval of the financial instrument will attract new investors to the digital asset market. The latter will positively affect the behavior of the rate of digital assets.

Recall that earlier Bitwise specialists explained in detail why the digital asset market is ready to launch Bitcoin ETF.