The US Securities and Exchange Commission (SEC) has rejected two more physically backed Bitcoin exchange-traded funds (ETFs). These were the ETFs suggested by Valkyrie and Kryptoin respectively.
The proposals are not in line with the law, SEC says
According to the Commission, NYSE Arca and Cboe BZX Exchange, which have filed respective proposed rule changes to list and trade Valkyrie and Kryptoin products, “have failed to demonstrate that their proposals comply with the requirements of Exchange Act Section 6(b) (5).”
The SEC stated that this relates specifically to the requirement that a national stock exchange must be “designed to prevent fraudulent and manipulative acts and practices.” It must also “protect investors and the public interest”.
An ETF is an investment tool that allows investors to buy stocks that track the price of an underlying asset. A Bitcoin ETF, as the name suggests, is said to provide exposure to Bitcoin. This would save the hassle of buying the cryptocurrency from an exchange and managing the private keys.
The SEC has repeatedly made all efforts to
No Bitcoin ETF in 2021
The Commission’s latest move means the market will not see a Bitcoin ETF this year, with key dates next month.
— James Seyffart (@JSeyff) Dec 22, 2021
The SEC will rule on Anthony Scaramucci’s Skybridge Bitcoin ETF before January 22. Added to this is a decision on Fidelity’s Wise Origin Bitcoin Trust filing on January 27.
In November, the regulator rejected a spot Bitcoin ETF application filed by investment firm VanEck. This was followed by the rejection of WisdomTree’s application in early December.
Last week, the SEC postponed decisions on Bitcoin ETFs proposed by digital asset managers Bitwise and Grayscale by another 45 days.