New York-based wealth management Wilshire Phoenix has responded to the SEC’s rejection of its application for a Bitcoin ETF.
The asset management company states that it is “very disappointed” with the SEC’s decision, as it would have put a lot of effort into making its Bitcoin (BTC) -based index fund (ETF) as compliant as possible. As Wilshire Phoenix writes:
“We have done everything possible to gain an understanding of the SEC. For example, we carried out further analyzes, the results of which were made available to the SEC, we leaked important data to them and offered to disclose additional information in order to get a regulated Bitcoin index product (ETP) onto the American market. Unfortunately, the current decision shows that all of these efforts have not been sufficient to convince the SEC. ”
SEC sees Bitcoin ETF as a threat to investors
Wilshire Phoenix first submitted its application for a corresponding Bitcoin investment fund to the SEC in January 2019. At that time, wealth management argued that such an index product “offers investors a more efficient, convenient and stable value access to Bitcoin than buying the cryptocurrency directly”.
Despite the firm making six amendments to its application in 13 months, the SEC rejected Wilshire Phoenix’s application on Feb. 26 citing market manipulation and investor protection concerns.
Even though the company has made six changes to its application in the past 13 months, the U.S. regulators rejected it on February 26 because it saw a financial product of this kind as a risk of market manipulation and a threat to investor protection.