• The US SEC has denied another spot-based Bitcoin ETF application.
  • WisdomTree’s Bitcoin ETF has witnessed several delays from the regulator and was finally rejected.
  • The agency has yet to allow a Bitcoin ETF based on the spot market to move forward.

The United States Securities & Exchange Commission (SEC) has disapproved another spot-based Bitcoin exchange-traded fund (ETF). The regulator rejected a proposed rule change from the Cboe BZX Exchange to list and trade shares of the Bitcoin Trust from WisdomTree.

WisdomTree spot Bitcoin ETF denied

The SEC has rejected the second Bitcoin spot ETF, citing the lack of surveillance sharing agreements and the inability to prevent fraudulent or manipulative practices in the BTC spot market.

WisdomTree has already witnessed several delays in the regulator’s decision on its spot Bitcoin ETF in 2021. The company first filed its application with the SEC on March 26 this year. In April, the regulator opened the application to the public for comments and assigned longer periods of time to make a decision on the proposed rule change. 

The SEC dismissed a proposed rule change from the Cboe BZX Exchange to trade shares of the firm’s Bitcoin Trust and stated that any rule change in favor of approving the ETF would disallow the protection of investors and the public interest.

The securities regulator further stated that the BZX had not met its burden under the Exchange Act and the Commission’s Rules of Practice. The SEC explained that the proposed Bitcoin ETF would not allow the agency to detect or obtain information necessary to investigate fraud and market manipulation.

The agency further claimed that BZX did not provide sufficient information to clarify on how the cryptocurrency market is resistant to manipulation or address concerns on potential sources of fraud, manipulation, wash trading and other risk factors. 

VanEck’s Bitcoin ETF was rejected by the SEC for similar reasons in November. While there is demand for cryptocurrency ETFs among digital asset investors, the regulator has rejected a number of BTC ETF applications.

Although the regulator is reluctant to approve spot-based crypto ETFs, the agency has already approved ETFs tied to Bitcoin futures contracts since October. SEC Chairman Gary Gensler has publicly reiterated support for futures-based Bitcoin ETFs in the past few months. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Binance Coin: This level stands between BNB price and $450

Binance Coin: This level stands between BNB price and $450

Binance Coin price faces a decision as it knocks on the doors of significantly stacked resistance barriers. Clearing these blockades is the only way BNB can trigger a swift run-up to important levels.

More Binance Coin News

Why MATIC price is setting the scene for a blowout

Why MATIC price is setting the scene for a blowout

Polygon (MATIC) price has had difficulty finding a supportive floor for bulls to get a foot in the door and price action moving higher. Now, however, a floor looks to have been identified at $0.62, with price action consolidating just above. 

More Polygon News

The last time this happened Shiba Inu price exploded

The last time this happened Shiba Inu price exploded

Shiba Inu price is stuck trading inside a range for nearly two weeks and shows signs of exploding soon. Interested investors can ride this wave, which is likely going to be volatile and quick.

More Shiba Inu News

Why renowned technical analysts believe Bitcoin price has bottomed out

Why renowned technical analysts believe Bitcoin price has bottomed out

Bitcoin price has been dominated by bearish sentiment recently, but the BTC trend might be nearing a turnaround. Several leading analysts in the crypto community are arguing that Bitcoin price action has developed in a more irregular manner over the years and diminishing “cycles” imply Bitcoin has bottomed out. 

More Bitcoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis