US SEC Reopens Rejected October Bitwise Bitcoin ETF Proposal

Richard M Adrian by Richard M Adrian - 12:28 PM Nov 19, 2019
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US SEC Reopens Rejected October Bitwise Bitcoin ETF Proposal


Late October, a Cryptoknowmics correspondent reported US Securities and Exchange Commission (SEC) decision;  to turn down the Bitcoin Exchange-traded fund (ETF) from Bitwise Asset Management and NYSE Arca. Meanwhile, the SEC is currently reviewing its decision on the rejection of the filing. 

 

Taking a second look on Bitcoin ETF Proposal


An announcement dated Nov 18, the authority stated the Bitcoin ETF Proposal from Bitwise Asset Management and NYSE Arca will be back on review, following a prior rejection for failing to meet the necessary requirements. In the October report, the US commission had highlighted that the application did not meet requirements and could possibly create an opportunity for market manipulation and illicit financial activity. Here is a part of the statement: 

"The Commission is disapproving this proposed rule change because, as discussed below; NYSE Arca 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 Section6(b)(5), and; in particular, the requirement that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices.”

 

Continued concerns about market manipulation


Among the regulator’s main concerns when assessing the new commodity for exchange based on an ETF; was to establish whether the existing market was bulletproof of manipulation. In the SEC rejection statement, the commissioners highlighted evidence sufficiently supporting the claim that a real spot market for Bitcoin, when non-economic data and/or fake is removed; is sufficiently resistant to market manipulation. 

The regulator announced that it would be reviewing the proposal once again. Meanwhile, calling out any person or parties interested in supporting or opposing the file statement, to pursue action to delegated authority by Dec 18, 2019. Additionally, the commission further pointed out orders to disapprove the proposal listing of the Bitcoin ETF Proposal filing from NYSE Arca and Bitwise Asset will remain effective during the commission's pending review.

 

About The Author
Richard M Adrian

Richard M AdrianBlockchain Analyst with a demonstrated history of working in the writing and editing industry. Skilled in WordPress, Editing, SEO Copywriting, Copy Editing, and Blog Marketing. When I am not writing, analyzing bulls/bears - I will be listening to music, reading a thrilling novella or hiking. Email me at Richardmadrian@gmail.com - And we could talk about anything - business or dragons.

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