Another One Bites The Dust: SEC Rejects WisdomTree's Bitcoin ETF Application

The U.S. Securities and Exchange Commission (SEC) has denied yet another Bitcoin (CRYPTO: BTC) spot market exchange-traded fund (ETF) application, after approving multiple Bitcoin futures-based ETF applications.

What Happened: Bloomberg Intelligence ETF analyst James Seyffart wrote in a Thursday tweet that the SEC sent "another Bitcoin ETF denial letter." This time it was to WisdomTree. Seyffart noted this was an expected development and expects Kryptoin's application to be denied before Christmas (Dec. 25) as well.

As Benzinga reported in early November, the Chicago Board Options Exchange BZX Exchange's filing asked the SEC to make a rule change that would allow it to list VanEck's Bitcoin fund. It was rejected. At the time, the regulator argued the exchange has not done enough to prove it could prevent fraudulent traders and protect its investors.

See Also: Bitcoin ETFs vs Spot BTC  

The SEC approved Bitcoin futures contracts that took place in October — which were met with great enthusiasm by market participants — but refused to approve spot trading contracts over market manipulation concerns.

BTC Price Action: As of Thursday afternoon at publication, Bitcoin is trading at about $56,770.15 after seeing its price decrease by about 1.08% over the last 24 hours.

Photo by Kai Pilger on Unsplash