The U.S. Securities and Exchange Commission (SEC) rejected Wilshire Phoenix’s Bitcoin ETF proposal on the grounds that the market was manipulable.
While the crypto markets are curiously waiting for what the decision will be for another Bitcoin ETF today, the U.S. Securities and Exchange Commission (SEC) did not surprise once again. The statement from the commission reported that the Bitcoin-based ETF proposal of the Wilshire Phoenix company was rejected.
The SEC suggested that Wilshire Phoenix, as grounds for rejection, could not prove that the Bitcoin market was sufficiently resistant to manipulation. If this application was accepted, the ETF in question would be listed on NYSE Arca.
Wilshire Phoenix’s ETF application is the last of many applications rejected by the SEC to date. However, the last proposed ETF contained different features than others. In addition to Bitcoin, the ETF would also be based on US Treasury bonds. According to William Herrmann, the company’s general manager, who previously made a statement to CoinDesk, this would balance Bitcoin’s price volatility.
Bitcoin is trading at $ 8800 on the cryptocurrency exchange Bitstamp, when the news goes live. Cryptocurrency dropped about $ 750 a day.
What is ETF and why is Bitcoin ETF important?
ETF stands for Exchange Traded Fund, namely the Exchange Traded Fund or the Exchange Traded Fund. Simply put, as the name suggests, it refers to the ordinary investment funds traded on the stock market. ETFs that are bought and sold at spot prices such as stocks can have one or more underlying assets. The fund copies the returns of these assets and presents them to investors. Assets under the top 10 of the most popular ETFs in the world exceed $ 1 trillion.
If a Bitcoin ETF is approved, Bitcoin will also receive a share of this trillion dollar market. This is thought to have a significant impact on the price.
The first ETF for gold was approved in March 2013. After that, the price of gold increased more than 300%. ETF has an expectation that it can affect Bitcoin in a similar way.