Now, the industry has the official answer of the Securities and Exchange Commission, which highlighted numerous reasons in its official disapproval letter.
For bitcoin-based ETPs, the Commission has consistently required that the listing exchange have a comprehensive surveillance-sharing agreement with a regulated market of significant size related to bitcoin, or demonstrate that other means to prevent fraudulent and manipulative acts and practices.
Another interesting take in the Disapproving Order is that the commission does not believe that currently existing CME Bitcoin futures impact the price of the spot market; hence, the spot-based ETF is not essential.
In conclusion, the main reason for the disapproval of the spot-based Bitcoin ETF still remains the same: inability to fully control the decentralized cryptocurrency market.
Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future.