Another day, another rejection of a Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC).
This time it is WisdomTree Bitcoin Trust, whose second attempt at the ETF was ruled out on the grounds of insufficient investor protection.
WisdomTree’s first proposal for a spot Bitcoin ETF was thrown out in 2021. This is not the only company to have such difficulties in getting approval from the SEC, as Grayscale Investments have also been denied on their application to convert the Grayscale Bitcoin Trust (GBTC) into a spot ETF.
The SEC has been very clear that it is unlikely a spot ETF would be approved, so these rejections do not come as a surprise.
What is an ETF?
ETF stands for Exchange-Traded Fund. These ETFs will track the prices of a single or a basket of multiple assets and are tradeable on stock markets.
Any approval to launch an ETF for crypto assets would be incredibly bullish for the cryptocurrency markets, as it would signal a general acceptance of cryptocurrency from traditional finance and the SEC, which still looks a long way off, bearing in mind the SEC’s continual refusal.
With investors likely becoming frustrated at the continual rejections from the SEC, money may flow into other promising assets. , primed to launch in November, could very well be one of these assets. The project concept involves a token that is backed by a vault of assets, whilst additionally, the team’s signature Ultra Burn system will be reducing the supply drastically over time. The way that the GLO token functions would mean that fewer tokens are backed by a constantly increasing vault, almost guaranteeing positive price action. It has already been seen that after the ETF rejection, Uniglo.io presale numbers began picking up, with money flowing in to grab some of the last that will finish soon. The protocol launches in November, and with the Uniglo treasury already containing assets before launch, rejection of the Bitcoin ETFs may come as a golden opportunity for those that changed their plans and bought into this ICO instead.
