The Securities and Exchange Commission denied the application for the VanEck Bitcoin ETF on concerns over “fraudulent and manipulative acts and practices” in the markets where bitcoin is traded.
Speculation that the ETF might be approved helped push bitcoin to a fresh high of $68,676 on Wednesday, as Sunday’s deadline for the SEC to reject it neared.
“The SEC has received a lot of comments for many years on Bitcoin ETFs but it has a broader mandate.
US authorities have said the primary listing exchange for a bitcoin ETF needed to have a comprehensive agreement with a large regulated market related to bitcoin so it could monitor for potential manipulation or fraud.
Todd Rosenbluth, head of ETF and mutual fund research at CFRA Research, said: “The SEC has been consistent that it believes a spot Bitcoin ETF would not protect investors from fraud or manipulation.