Investment management firm Wilshire Phoenix had initially proposed the BTC ETF back in mid-2019, but the SEC’s ruling was repeatedly delayed. The SEC in a 76-page statement released, said today that the applicant failed to meet the necessary requirements, particularly those related to market manipulation and illicit activities.
Wilshire Phoenix ETF proposal rejected.
The US SEC has not approved any BTC ETF so far, as they believe the bitcoin market is vulnerable to manipulations and frauds. It did not come as a surprise that SEC rejected Wilshire Phoenix’s BTC ETF proposal as the security exchange has rejected all the BTC ETF proposed in the past. The Winklevoss twins are among whose bitcoin-exchange traded fund proposal was rejected by the US SEC.
Why the SEC refuses to approve BTC ETF?
The US SEC has not changed its stance on bitcoin exchange traded funds as it continues to reject proposals after proposals. The SEC believes that the bitcoin market is still vulnerable to market manipulations and fraud, and approving an ETF is not appropriate. Several crypto companies even pulled back their proposals before SEC could announce their decision. The SEC had postponed the decision for this particular ETF a couple of times in 2019 before finally rejecting it.