The Securities and Exchange Commission has disapproved a proposed rule change that would allow Bitwise Asset Management’s Bitcoin ETF Trust to list and trade. The firm said it plans to re-file as soon as it’s appropriate.
“While we were not able to satisfy the SEC's concerns inside the statutory 240-day review window afforded these filings, and while they have identified the need for additional data and context to interpret our key findings, we are pleased with the progress that the industry has made and believe that, with additional research and continued progress in the broader ecosystem, the remaining concerns and challenges raised in this order will ultimately be satisfied,” said Matt Hougan, global head of research at Bitwise, in a statement.
In its 112-page order, the SEC said its disapproval is not an evaluation of whether bitcoin has value as an investment. “Rather, 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 Section 6(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.’”
Over the summer, the SEC delayed the decision to approve Bitwise’s bitcoin ETF; other sponsors, including VanEck and SolidX, withdrew their applications.
Last month, Bitwise Chief Operating Officer Teddy Fusaro and Hougan gave a presentation to SEC commissioners Robert Jackson, Hester Peirce and Elad Roisman on the state of the bitcoin markets. The presentation focused on the improved efficiency of the bitcoin spot market, the institutionalization of the cryptocurrency’s custody and the grow.