The United states of america Securities and Exchange Commission (SEC) has rejected a proposal to list a Bitcoin (BTC) exchange-traded fund (ETF).

In an announcement on Oct. ix, the Commission stated that the ETF filing from Bitwise Asset Direction and NYSE Arca did not meet the necessary requirements.

Specifically, regulators stated that the applicants did not come across the necessary requirements regarding possible market place manipulation and illicit activities. The SEC wrote:

"Rather, theCommission is disapproving this proposed rule modify considering, every bit discussed below, NYSE Arcahas non met its burden nether the Exchange Deed and the Commission's Rules of Exercise todemonstrate that its proposal is consistent with the requirements of Exchange Act Section6(b)(5), and, in particular, the requirement that the rules of a national securities exchange be'designed to prevent fraudulent and manipulative acts and practices.'"

Bitcoin ETF "closer than e'er?"

Today's decision by the SEC seems to fly in the face of recent comments from Matt Hougan, managing director and global head of research at Bitwise, who on CNBC on Oct. 7 said, "We're closer than we've always been before to getting a Bitcoin ETF approved."

Hougan had been optimistic about the business firm'southward chances to land approval for a physically-held Bitcoin ETF. He noted the significant growth that has transpired in the crypto space in recent years, stating:

"Two years ago, in that location were no regulated, insured custodians in the Bitcoin marketplace. Today, ... there are big names like Fidelity and CoinBase [with] hundreds of millions of dollars of insurance from firms like Lloyd's of London."

The rejection of Bitwise'south proposal follows a complex series of delays and requests for comment from the SEC. In Baronial, the regulator postponed its decision on the proposal — together with ii other crypto ETF applications — until Oct. xiii.

Bitwise initially filed its application for a rule change to U.Southward. securities laws in January.