SEC Denied Intellect Bitcoin ETF Application: Report

The US SEC has rejected WisdomTree’s Bitcoin ETF application and has yet to approve a spot market-based Bitcoin ETF in the states. So let’s read more in today’s bitcoin news.

The US SEC has denied the Wisdomtree Bitcoin ETF in a letter that it does not meet the criteria to prevent fraudulent and manipulative practices, as well as practices to protect investors and the public. An ETF is an investment vehicle that allows investors to buy stocks that represent the underlying asset. A Bitcoin ETF allows investors to get more involved in BTC without having to buy the cryptocurrency from an exchange and keep it in a wallet. There is a demand for a BTC ETF among crypto investors, but the SEC can’t allow one.

Under the authority of the chairman Gary Gensler, the SEC has allowed Bitcoin futures ETFs to be traded, and these products allow investors to buy stocks linked to contracts that bet on the future price of the cryptocurrency. The futures market is regulated by the CFTC, as opposed to the spot market, which could explain why the chairman of the SEC allowed the development of BTC futures ETFs. The Bitcoin Futures ETF has seen huge buzz in the market, as an example we saw the ProShare Bitcoin Strategy ETF, which started trading on the New York Stock Exchange for nearly $ 1 billion in stocks. However, competitors have brought similar products to market with no good results.

WisdomTree is a New York-based ETF sponsor and asset manager that has also registered an ETH ETF that tracks cryptocurrencies by market capitalization. There is a list of well-known companies waiting for a response from the SEC, but the odds are still high and the SEC has denied every application so far.

As recently reported, Fidelity Investments has launched a spot BTC ETF in Canada and does not intend to wait for the SEC’s decision. The company has approximately $ 4.2 trillion in assets under management and has grown to become one of the leading wealth management companies in the world. Reports show the company has no intentions of waiting for the US SEC to decide whether to approve a spot BTC ETF in the country. Fidelity launches a spot BTC ETF in Canada.