The Securities and Exchange Commission has rejected a bid to list a bitcoin-based exchange-traded fund.
The SEC denied an application by the Cboe BZX Exchange for the VanEck Bitcoin ETF, citing concerns over “fraudulent and manipulative acts and practices” in markets where bitcoin is traded.
The SEC has previously rejected other application for bitcoin ETFs, but recently gave the greenlight to the first bitcoin futures-based ETFs, leading to speculation that it could approve the VanEck plan. Other applications are awaiting rulings.
Among the concerns cited by the SEC are potential price manipulation by bitcoin whales, so-called "wash trading", and possible “manipulative activity involving the purported ‘stablecoin’ Tether”.