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It seems a Bitcoin ETF happening this year is no longer feasible. The United States Securities and Exchange Commission (SEC) has once again thrown out another application.

Wilshire Phoenix and NYSE Arca Bitcoin ETF application, the last remaining proposal with the SEC, has been rejected. The SEC in a Wednesday post announced the rejection stating that NYSE Arca is yet to sufficiently prove that the Bitcoin market is resistant to market manipulation.

The regulator said, “NYSE Arca has not established that the relevant Bitcoin market possesses resistance to manipulation.” Adding that it is unique beyond that of traditional security or commodity markets such that it is inherently resistant to manipulation.”

Crypto Mom unhappy with SEC

SEC Commissioner Hester Peirce expressed her disagreement in the SEC announcement. Adding that the SEC was intentionally rejecting the proposals without giving them the opportunity to clear all reasonable doubts.

She said that this “Commission is unwilling to approve the listing of any product that would provide access to the market for Bitcoin”. Further adding that no matter how good a filing is, it will never be good enough for the SEC. Seeing that the commission is out to stifle Bitcoin.

The rejected proposal was designed to combine Bitcoin with T-bills. The proposal was expected to cushion and also radically reduce volatility in the crypto space.

Bitcoin ETF is not happening anytime soon

Prior to this time, the SEC has rejected all Bitcoin ETF proposals filed to them. Most of the time blaming their decision on volatility and the crypto space is prone to market manipulation.

Several other firms also sent in a Bitcoin ETF proposal to the SEC. And one by one, they all went through the cycle of postponing, rejection, reviewing, etc. Last year, the SEC rejected Bitcoin ETF for Bitwise Asset Management’s bitcoin ETF proposals. In January 2020, Bitwise withdrew its ETF proposal, citing that it was trying to fulfill the SEC requirements before reapplying.

Van Eck and Solid X also withdrew their application, after nearly a year of rejections, postponement, and reapplication, etc.

Speaking on the announcement, James Seyffart added that there was nothing unique about Wilshire. Hence no viable reason to approve it when others were rejected. Seyffart is an analyst for Bloomberg.

Many analyses are saying that a Bitcoin ETF is effective on paper but might not be in real-life. Owing to harsh regulations and market manipulation concerns. Also adding that ‘We are excited by the prospects for ETFs leveraging the blockchain, regardless of if they are digital currency or traditional asset classes. This ultimately provides the ability to broaden distribution and enhance efficiency.”

Many people thought 2019 was the year for a Bitcoin ETF, now getting one approved in 2020, is looking like an impossible undertaking.

(Excerpt) Read more Here | 2020-03-03 11:36:00

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