SEC Dismisses Wilshire Phoenix’s Bitcoin ETF Proposal Citing Fraud Concerns

Wilshire Phoenix’s ETF bid was launched back in 2019 and ruling has been delayed on numerous occasions by the SEC. In a 76 page report, the SEC noted that the New York-based firm did not meet all the requirements stressing on market manipulation and illegal activities. Regardless, the SEC has rejected all the ETF applications it has received in the past. Wilshire is just the latest bid to be rejected.

Indeed, many people have viewed a Bitcoin ETF as a perfect opportunity for interested parties to manifest into Bitcoin without necessarily holding the digital asset. Now it seems all hope is lost as the SEC has frequently dismissed ETF bids in the past. The agency has in the past quashed proposals from Bitwise, VanEck-SolidX and the Winklevoss twins.

Last ETF Application Rejected

Moreover, the agency has referenced market manipulation and lack of surveillance sharing agreements as the chief reason for rejection. Well, we can see that it has not been different for the Wilshire Phoenix bid either. This was the last  Bitcoin ETF rule change application under SEC’s review.

Furthermore, if the agency had approved the ETF, Wilshire Phoenix would list shares of Bitcoin ETF on the NYSE Arca. Back in mid-2019, the SEC invited the public to comment on the latest ETF bid. After receiving public opinion, the agency can deliver a ruling within a 45 days time frame. However, it can postpone decision making for up to 90 days.

In conclusion, Wilshire Phoenix’s latest bid joins a long list of SEC rejected ETF bid applications killing the final piece of hope we had for an exchange-traded fund.