The US Securities and Exchange Commission once again proved it is highly reluctant to allow the launch of a Bitcoin (BTC) exchange-traded fund (ETF). The proposal by Bitwise Asset Management was once again reviewed and rejected.
The SEC once again rejected the proposal, on the grounds that Bitwise and its partner NYSE Arca failed to explain the potential to protect the ETF investors from market manipulation affecting BTC spot prices.
The ETP proposal hinged on claims by Bitwise that BTC had a highly regulated spot market for dollars, where real volumes and price discovery happened. However, Bitwise also noted that up to 95% of BTC trading may be faked, and failed to offer a remedy. The SEC also suspected that an en...