In the year 2009 when the cryptocurrency industry was launched, it was an infant that needed time to grow up. Over the course of time, the cryptocurrency industry went through all the ups and downs.

Finally, the cryptocurrency industry gained enough respect and following that its future has become somewhat secure. 

Cryptocurrency Industry Need Mainstream Adoption

Despite the success the cryptocurrency industry gained among the internet communities, it did not gain much respect in the mainstream industry. 

The institutional and major investors avoided getting into the cryptocurrency industry. It happened because such investors did not find the cryptocurrency industry to be safe enough to make investments. 

ETFs were Introduced

This is when the idea of the cryptocurrency exchange-traded funds (ETFs) was born. As the ETFs are launched through the regulated channels, it offered the regulatory environment that the mainstream/institutional investors wanted. 

Through the ETFs, the mainstream investors have found a platform where they can make investments indirectly into cryptocurrencies. 

However, the environment they are provided is secure, protected, and fully regulated. 

ETF Adoption Across the Globe

With the recognition of the cryptocurrency industry growing worldwide, even the mainstream investors demanded for cryptocurrency investment channels.

This is when the major mainstream companies had to find ways to provide their clients with such facilities. Therefore, companies from all over the world have continued launching cryptocurrency ETFs since the beginning of 2022.

Countries such as Canada, Australia, South Africa, Hong Kong, and many more have all approved the requests for ETFs in their regions. This way, the major companies based in these countries have offered their clients with investment opportunities. 

It is a clear indication that even the regulatory authorities in these countries have realized the importance of cryptocurrencies. 

They know what future the cryptocurrencies have to offer their investors and how much they can gain from them in terms of their economic growth.

The US SEC is Not Moved

Being the Securities and Exchange Commission (SEC) of the largest country in the world as per economy “the US”, many eyes are set on the regulator for the approval of ETFs.

However, the ETF does not seem to be fully moved by the importance and sentiments of investors because it is not ready to accept cryptocurrencies as a whole.

The US SEC simply does not look eye to eye with the cryptocurrency industry and as a result, it tends to reject most of the ETF approval applications. 

It seems that the US SEC does not like the idea that the investors buy Tether (USDT), Bitcoin (BTC), or other cryptocurrencies, directly or indirectly.

WisdomTree’s Request is Denied

Just recently, the US SEC has rejected the approval request submitted by WisdomTree for a cryptocurrency ETF. 

The reports confirm that WisdomTree had submitted a request for the approval of the Bitcoin ETF. WisdomTree is a major provider of the exchange-traded funds (ETFs). 

According to the latest reports, WisdomTree has simply rejected the Bitcoin ETF approval request. This is the second time that the request from WisdomTree has been rejected by the US SEC.

Proposed Rule Change

According to the sources, WisdomTree had submitted an approval request at the US SEC for a rule change. 

If changed, WisdomTree would be able to launch the shares for Bitcoin through the BTC ETF on the Cboe BZX Exchange. 

Unfortunately for WisdomTree, the US SEC has rejected the approval request yet again. The first time WisdomTree had submitted the request was back in January that the US SEC rejected in February. 

The US SEC has Trust Issues

Compared to the regulators from around the world, it is the US SEC that has proven to be the strictest against the cryptocurrency industry.

The US SEC does not support any request if there is a slight potential of a fraudulent or illicit activity taking place through the platform.

WisdomTree is not the only company that has been rejected by the US SEC requesting approval for a cryptocurrency ETF. The regulator has rejected several other crypto ETF requests in the past.

There is a high possibility that the US SEC may continue with such behavior until a fair regulatory infrastructure is built around cryptocurrencies. 

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