SEC Denied WisdomTree’s Bitcoin ETF Application: Report

The US SEC denied WisdomTree’s Bitcoin ETF application and has yet to allow spot-market-based Bitcoin ETF in the states so let’s read more in today’s Bitcoin news.

The US SEC denied Wisdomtree’s bitcoin ETF saying in a letter that it didn’t meet criteria designed to prevent fraudulent and manipulative acts and practices to protect the investors and the public. An ETF is an investment tool that allows investors to purchase shares that represent the underlying asset. A bitcoin ETF will allow investors to gain more exposure to BTC without having to purchase the crypto from an exchange and store it in a wallet. There’s a demand for BTC ETF Among crypto investors but the SEC can’t get to allow one.

Under Chairman Gary Gensler, the SEC allowed bitcoin futures ETFs to start trading and these products allow investors to buy shares linked to contracts that are betting on the future price of the cryptocurrency. The futures market is regulated by the CFTC, unlike the spot market that can explain why the SEC’s Chair allowed BTC futures ETFs to move ahead. Bitcoin futures ETFs were met with strong enthusiasm from the market like the one example we saw with ProShare’s Bitcoin Strategy ETF which traded nearly $1 billion in shares on the debut when it started trading on the New York Stock Exchange. The competitors that launched similar products haven’t fared well, however.

WisdomTree is a New York-based ETF sponsor and asset manager that also applied for an ETH ETF which will track the cryptocurrency by market cap. There’s a list of high-profile companies waiting for a response from the SEC but the odds remain stacked against them and the SEC rejected every application so far.

As recently reported, Fidelity Investments launched a spot BTC ETF in Canada and doesn’t intend to wait for the US SEC to make up its mind. The company manages around $4.2 trillion in assets and made it one of the leading asset management companies worldwide. The reports reveal that the company has no intentions of waiting for the US SEC to make up its mind on whether or not to allow the spot BTC ETF in the country. Fidelity is launching a spot BTC ETF in Canada.