The SEC recently approved a slew of blockchain-focused funds for WisdomTree but continues to deny spot Bitcoin ETFs.
Crypto asset manager Grayscale stated that the SEC had filed its first legal brief detailing its refusal to allow spot BTC ETFs.
Jangwon Lee, the creator behind the new K-pop ETF, expects things to pick up eventually despite the lull in Korean entertainment.
Vitalik Buterin said that he is happy to see crypto ETFs getting delayed as the market hasn’t reached enough maturation.
According to the SEC, the application by Grayscale failed to answer the questions about preventing crypto market manipulation, among other concerns.
The SEC noted that WisdomTree’s proposal failed to meet sufficient conditions of investor protection, fraud prevention, and price manipulation in the spot Bitcoin market.
The ongoing market downturn has no hold on crypto-based ETFs and Bitwise is looking to capitalize with its new ETF launch.
The thematic ETF by Franklin Templeton will track the Solactive Global Metaverse Innovation Net Total Return Index.
The latest development from the regulatory body reportedly comes after the commission rejected Grayscale’s attempt to convert its Bitcoin trust into an ETF in June.
The SEC categorized Bitcoin Futures ETF and spot Bitcoin ETF as separate products.
Grayscale CEO has been pressing hard for the SEC to approve its spot Bitcoin ETF application. If the SEC decided otherwise, Grayscale is ready to take up a legal battle with the securities regulator.
Although Grayscale remains upbeat about the future, GBTC’s performance has been the subject of criticism by market experts, channeling the blame at regulators for what they see as an inaccurate risk assessment.
The ETF will seek to invest in stocks of blockchain-related companies, including developers with R&D, beneficiaries, and investors, around the world, a move that is aimed at achieving long-term capital growth.
Grayscale is confident more investors will embrace the product if it is presented as a spot Bitcoin ETF.
Since two years of its launch, the growth in the funds flow into the Fidelity Bitcoin Index Fund remains subdued.