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Here is the tl;dr of why it was rejected, from a brief skimming: The spot bitcoin price used to compute the ETF is based on unregulated exchanges in a sector t

Here is the tl;dr of why it was rejected, from a brief skimming: The spot bitcoin price used to compute the ETF is based on unregulated exchanges in a sector that is concentrated, and rife with fraud and market manipulation (which the entity applying for the ETF does not deny!). The guard rails to make sure that the ETF is insulated from fraud and market manipulation are... not really there. Basically "we believe the exchanges we use to compute Bitcoin price information are free from fraud and market manipulation."

yieldcrv 4y ago
Not the SEC’s job. It is an application of multiple acts that never envisioned ETFs wrapped around commodities. No person in Congress ever said “hey you know how you don't judge the merit of investments, by design, well we want to add in subsection 8) to make an exception to that for ETFs full of spot commodities”