WisdomTree’ Bitcoin spot ETF application rejected by SEC

The US regulators rejected the Bitcoin spot ETF application of the WisdomTree and said that market manipulation is a big concern. 

On 1 December, the United States Securities and Exchange Commission (SEC) agency rejected the application of WisdomTree‘s Bitcoin spot Exchange trading fund product. 

Many reports claimed that the SEC agency is not giving answers with better clarity that are reasons to reject it. And also there are no fair reasons to reject the application. 

However, the SEC agency explained on their own and pointed out the main reason for the rejection of the application of Bitcoin spot by the Wisdom Tree firm. 

According to the SEC agency, there are many types of risks with Bitcoin Bitcoin spot ETF products. And the main important risk is market manipulation. 

SEC agency officially wrote about the concerns with the application of WisdomTree: 

“The Commission concludes that BZX 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 Section 6(b)(5), in particular, the requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices and ‘to protect investors and the public interest”

Grayscale on SEC’ decision of Bitcoin spot ETF 

On 12 November, the SEC agency rejected the application of VanEck’s Bitcoin spot ETF product application. 

In response, Grayscale wrote an open letter to the secretary of the SEC agency and described the decision of the SEC agency as a wrong idea because they are considering two similar things in different ways. 

Here, Grayscale is almost sure that the SEC agency will soon reject the application of Grayscale’s GBTC conversion into Bitcoin spot ETF product. 

The SEC’s decision on Grayscale’s application would come before 25 December. 

Read also: El Salvador’s President explains why Bitcoin is better than Gold