New York-based asset management firm Wilshire Phoenix has slammed the United States Securities and Exchange Commission (SEC) for its handling of bitcoin exchange-traded fund (ETF) proposals.
Wilshire Phoenix, which previously filed an ETF proposal in January 2019, ripped the SEC for its handling of the rejection process. The firm stated it was “very disappointed” by the SEC’s ruling, and went to great lengths to comply with the regulatory body’s expectations.
The investment firm made six amendments to its original application over the course of thirteen months before having its ETF proposal outright rejected on Feb. 26. The SEC cited the potential for market manipulation and concerns related to investor protection as their primary reason for denying the proposal.
Wilshire Phoenix issued a response to the regulatory body’s decision, saying,
We made every effort to get the SEC’s attention on this important issue, including undertaking extensive analysis that was made available to the SEC staff, submitting key data, and offering to provide additional information to facilitate the listing of a much needed regulated bitcoin-related ETP in the United States. Unfortunately, the Order shows that all of these efforts did not receive the SEC’s full attention.
William Herman, managing director for Wilshire Phoenix, argued that the SEC is potentially harming investors by denying regulated products such as ETFs.
He said,
Many retail investors are already investing in this commodity and investor demand continues to grow each day. Our ETP was created to provide investors with exposure to bitcoin through a regulated and transparent vehicle that also mitigates volatility.
He concluded,
In my opinion, the Commission has done a great disservice to the public by rejecting this application.
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