- Wilshire Phoenix Company responds to the Securities and Exchange Commission’s (SEC) rejection of its Bitcoin ETF proposal.
- The SEC is doing a disservice by continuing to reject Bitcoin ETFs, according to Wilshire Phoenix.
The company behind Bitcoin’s ETF proposal rejected by the Securities and Exchange Commission (SEC) on 26 February responds to the decision. In a press release Wilshire Phoenix expressed its disappointment with the Commission’s rejection. The New York-based company claims to have made a major effort to comply with SEC standards:
(…) including undertaking extensive analysis that was made available to the SEC staff, submitting key data, and offering to provide additional information to facilitate the listing of a much needed regulated bitcoin related ETP in the United States.
Wilshire’s application was filed in January 2019. The company took into consideration previous SEC rejections and therefore created an ETF proposal designed to provide investors with exposure to the Bitcoin market through a “regulated and transparent” mechanism that would mitigate volatility. U.S. government bonds were to be favored as volatility increased.
The mechanism was insufficient for the SEC. The regulator reiterated its concerns about market manipulation and lack of joint oversight. According to Wilshire Phoenix’s statement, the SEC has created parameters related to an ETP that are “inconsistent with the Exchange Act”. Wilshire Phoenix continues to state that there are already many investors investing in Bitcoin and that demand will continue to grow. Wilishire’s Managing Partner, William Herrmann, stated:
In my opinion, the Commission has done a great disservice to the public by rejecting this application. We are carefully reviewing the Order and determining the best next steps.
In defense of Bitcoin ETF
Within the committee, there are also critical positions on the SEC’s continuing decision to reject a Bitcoin ETF. Hester Peirce, known as «Crypto Mom» in the crypto community, has spoken out in favour of the approval of an ETF and has spoken out against the Commission’s decisions on several occasions. Herrman endorsed and praised Pierce’s statements:
Commissioner Peirce’s dissent eloquently captures the investing public’s frustration; I could not agree with her more.
It remains to be seen what steps Wilishire Phoenix will take in response to the SEC’s decision. However, as many experts have stated, approval of an ETF seems to be completely out of the question in 2020.
Follow us on Facebook and Twitter and don’t miss any hot news anymore! Do you like our price indices?
Recommended for you:
- Buy Bitcoin Guide
- Bitcoin Wallet Tutorial
- Check 24-hour Bitcoin Price
- More Bitcoin News
- What is Bitcoin?
Subscribe to our daily newsletter!
No spam, no lies, only insights. You can unsubscribe at any time.