The US Securities and Exchange Commision has rejected New York based firm Wilshire Phoenix's Bitcoin Exchange Traded Fund (ETF) application, citing ongoing concerns over market manipulation and a lack of surveillance-sharing agreements.

Commissioner Hester 'Crypto Mom' Peirce has publicly disagreed with the rejection.

NYSE Arca had submitted a proposed rule change to allow the listing and trade of Wilshire Phoenix'due south U.s. Bitcoin and Treasury Investment Trust. The proposal included both US Treasury Bonds and Bitcoin and hoped to accost the SEC's concerns over marketplace manipulation by automatically rebalancing into bonds during periods of BTC price volatility.

Explaining the reasons behind its Midweek ruling the SEC said the visitor had been unable to provide plenty proof that information technology can protect itself from "fraudulent and manipulative acts and practices" in the Bitcoin market place in guild "to protect investors and the public interest."

The SEC noted:

"The Commission must disapprove a proposed rule alter filed past a national securities exchange if it does non find that the proposed dominion change is consequent with the applicable requirements of the Exchange Act — including the requirement under Section 6(b)(5) that the rules of a national securities substitution be designed to prevent fraudulent and manipulative acts and practices."

The SEC has rejected at least ix previous Bitcoin ETF applications to date including applications from Bitwise Asset Direction, VanEck/SolidX and Direxion. Kryptoin and Crescent Crypto however accept crypto ETF proposals pending decisions from the SEC.

In her dissent to the rejection, Commissioner Peirce stated that the commission had "once once again disapproved of a proposed rule alter that would give American investors access to Bitcoin through a product listed and traded on a national securities commutation subject to the committee's regulatory framework."

"This line of disapprovals leads me to conclude that this Commission is unwilling to corroborate the listing of any product that would provide access to the market place for Bitcoin and that no filing will meet the ever-shifting standards that this Committee insists on applying to Bitcoin-related products — and merely to Bitcoin-related products."