WisdomTree Investment's (NASDAQ:WETF) application for a spot bitcoin (BTC-USD) exchange-traded fund has been denied by the Securities and Exchange Commission on Tuesday, citing concerns about inadequate fraud and investor protections. This isn't the first time the company's proposal for a spot BTC ETF was not approved. Last year, it attempted to list the WisdomTree Bitcoin Trust, only to get jilted by the SEC. The SEC's move to reject the WisdomTree Bitcoin Trust doesn't come as a surprise as the agency continues to make plain that it doesn't intend to approve a spot bitcoin (BTC-USD) ETF amid mounting concerns over the cryptocurrency industry. Unlike a bitcoin strategy ETF like ProShares Bitcoin Strategy (NYSEARCA:BITO), a spot Bitcoin ETF would hold actual BTC inside of the ETF wrapper.WisdomTree (WETF) is joining a growing list of firms that have faced rejections in the past year, including SkyBridge Capital, Kryptoin, VanEck and Fidelity. Looking at intraday price action, bitcoin (BTC-USD) fell 1.2% to under $18.96K at 3:02 p.m. ET. That's down from its November 2021 peak of $68.9K. Towards the end of August, VanEck's spot bitcoin ETF proposal has been delayed by SEC.
