Wilshire Phoenix Bitcoin ETF Application May Get Rejected By SEC

Moreover, through a statement back in January 2018;  the commission raised significant concerns in regards to the nascent Bitcoin and digital currencies markets; on top of volatility concerns. Up to now, none of the submitted ETF applications has satisfied the agency’s unease to secure a pragmatic ETF verification.

According to Compound Finance’s Jake Chervinks, the Wilshire Bitcoin has very high chances of being turned down by the SEC. Jake is a very popular cryptocurrency analyst. The SEC turned down past ETF applications voicing concerns over BTC market manipulation, high volatility of crypto and the security concerns behind digital currencies.

In addition, commissioner Hester Pierce of the SEC has a different point of view clashing with the agency. This earned her the nickname ‘crypto mom’ and elevated her status within the cryptocurrency community. However, this alone will not be reason enough for the agency to change its stance regarding ETFs.

Additionally, another SEC commissioner raised positive sentiments regarding ETFs. Commissioner Robert J. Jackson Jr claimed that ETFs meet the standards set by the Securities and Exchange Commission. Nevertheless, that's not enough either.

SEC’s Demands Should be Met to Secure ETF

Moving forward, the SEC has a detailed list of concerns that are driving it to deny ETF applications. First of all, the SEC is demanding a fair price acquired through multiple exchanges. According to the agency, a single exchange cannot determine prices since investment opportunities may lead to suffusion.

In conclusion, the agency claims that the Bitcoin market is not liquid enough to oversee exchange-traded funds. The cryptocurrency industry has not matured well to offer great investment opportunities to investors. These two reasons are enough to turn down Wilshire’s ETF application.