The American corporate regulator has rejected the planned Bitcoin exchange-traded fund of asset manager WisdomTree after several months of deferrals, according to a regulatory filing.
The Securities and Exchange Commission (SEC) on Wednesday disapproved the proposed rule change from the Cboe BZX Exchange, as it said any changes would unlikely to be “designed to prevent fraudulent and manipulative acts and practices.”
The regulator also said the proposed ETF would not protect the interest of its investors and the public, as it found that BZX would not allow it to obtain the necessary information to detect, investigate, and deter fraud and market manipulation.
In its decision, the SEC said the BZX was not able to submit the necessary data to ensure that the crypto market is not susceptible to manipulation, and concerns over fraud and other risks such as wash trading.
The SEC also flagged that the BZX statements do not provide evidence that it is unlikely that trading would be the major driver on prices in the CME Bitcoin futures market.
WisdomTree originally filed its application with the SEC in March, but a decision has been delayed to take in pubic comments on the matter. BTC is up 1.22%.