The United States Securities and Exchange Commission (SEC) has rejected yet another Bitcoin ETF, this time the Bitwise Bitcoin ETF. Indeed, although there have been many applications to launch a Bitcoin ETF, the SEC has so far delayed or rejected all of them.
The SEC has clarified that the primary reason a Bitcoin ETF cannot be approved is that the Bitcoin market is too immature and prone to market manipulation. Indeed, a recent class-action lawsuit claims that Bitfinex and Tether Limited caused the Bitcoin rally of late 2017 via printing USD billions of fake Tether.
In order to combat market manipulation, the SEC requires surveillance sharing agreements between major exchanges. At this time the SEC does not have surveillance sharing agreements with the biggest crypto exchanges in the world since the biggest exchanges are generally overseas and not required to share data with the United States government.
It seems there is no hope for a Bitcoin ETF under the current administration. There is some slight hope that the next administration will have a better attitude towards Bitcoin ETFs, although a new administration will not be in place until 2021 or 2025.
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