Bitwise Asset Management and NYSE Arca put forward an application to the United States Securities and Exchange Commission (SEC) towards the establishment of the BTC exchange-traded fund (ETF). However, the SEC rejected the proposal last month.
Interestingly, on November 18, the SEC announced that it is going to reexamine the decision that rejected the proposal. The commission rejected the proposal due to the companies’ inability to meet the requirements.
The rejection of the proposal was because the U.S. regulators maintained that the firms couldn’t meet the requirements concerning the likely market manipulation and illegal activities. The regulator considers market manipulations in the process of evaluating commodity-based ETFs.
However, despite the announcement by the SEC to relook into the decision, it was maintained that the proposal remains disapproved until the completion of the review. According to Charles Lu, the condition the SEC requires for the approval of such proposals is unlikely to happen soon. In spite of the current issues, industry professionals are somehow still optimistic that all will be well in the long run.
Featured image courtesy of Shutterstock