SEC
Accused of ‘Ever-Shifting Standards’ after Latest Bitcoin ETF Rejection
The U.S. Securities and
Exchange Commission (SEC) has rejected the last proposal for a Bitcoin
exchange-traded fund (ETF). The last proposal came from Wilshire Phoenix and
NYSE Arca, to list a fund that was looking to mix Bitcoin and short-term Treasuries.
The regulator said, making it
clear it believes risks associated with potential price manipulation,
custody, and liquidity haven’t been properly addressed:
“The Commission concludes that NYSE Arca
has not established that the relevant Bitcoin market possesses a resistance
to manipulation that is unique beyond that of traditional security or
commodity markets such that it is inherently resistant to manipulation.”
In a dissenting statement
Commissioner Hester Peirce, a proponent of cryptocurrency-related products,
said she disapproved of the rejection and that it leads her to conclude the
Commission is “unwilling to approve the listing of any product that would
provide access to the market for Bitcoin and that no filing will meet the
ever-shifting standards that this Commission insists on applying to
Bitcoin-related products—and only to Bitcoin-related products.”
Wilshire’s proposal was
specifically looking to mix BTC with Treasuries to guard against the
cryptocurrency space’s volatility.
