Latest Posts
Search for:

SEC Rejects Another Bitcoin-Based ETF

by 2 Mins Read

In a January 14, 2020 filing with the U.S. Securities and Exchange Commission (SEC), Bitwise Asset Management requested the withdrawal of its application for a cryptocurrency-linked exchange traded fund (ETF).  This came after the SEC had rejected Bitwise’s proposal in October 2019. On February 26, 2020, the SEC issued an Order that rejected the request by Wilshire Phoenix for a Bitcoin-based ETF.

The SEC’s reasoning was similar to what it had said in 2019 with respect to Bitwise and in 2018 with respect to rejecting a similar request for the listing of the Winklevoss Bitcoin Trust.  Namely, Wilshire Phoenix was unable to persuade the Commission that the Bitcoin market is sufficiently resistant to market manipulation.

There was another common element to the Winklevoss situation in the form of a dissent from Hester Pierce, affectionately known as “Crypto Mom.” Apparently questioning whether the SEC will ever change its thinking about cryptocurrency, she wrote as follows:

This order is the latest in a long string of disapproval orders that the Commission has issued regarding bitcoin-related products. This line of disapprovals leads me to conclude that this Commission is unwilling to approve the listing of any product that would provide access to the market for bitcoin and that no filing will meet the ever-shifting standards that this Commission insists on applying to bitcoin-related products—and only to bitcoin-related products. Footnote 2 of the dissent identified the other examples of the SEC’s rejection of Bitcoin-related products.

Categories:
Author

Email
David Zaslowsky is partner in the Litigation Department of Baker McKenzie's New York office. He helps companies solve complex commercial disputes in arbitration and litigation, especially those involving cross-border issues and Section 1782 discovery. David has a degree in computer science and, as a result, has worked on numerous technology-related disputes, including, most recently, those involving blockchain and artificial intelligence. In April 2025, Attorney Intel named David one of the top 25 blockchain lawyers in the country. He is the editor of the Firm's blockchain blog and co-editor of the firm's International Litigation & Arbitration Newsletter. David has been included for a number of years in the Chambers USA Guide and Chambers Global Guide for his expertise in international arbitration. He also sits as an arbitrator and is on the roster of arbitrators for a number of arbitral institutions. David sits on the Board and chairs the governance committee of the New York International Arbitration Center, and is a founding member of the International Arbitration Club of New York. For over 35 years, he has written and spoken often on the subjects of arbitration and international litigation.

Related Posts