The move continues a recent string of denials by the SEC of applications for spot bitcoin ETFs.
The U.S. Securities and Exchange Commission (SEC) has rejected an application for a spot bitcoin exchange-traded fund (ETF) from Ark 21Shares, according to a filing, citing a lack of investor protections. Ark is run by star investor Cathie Wood.
The application was filed on behalf of the Cboe BZX Exchange to change the rules and allow for the listing of the Ark 21Shares offering.
“The Commission concludes that BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), and in particular, the requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest,’” the SEC wrote in its decision.
Ark Investment Management and investment-product firm 21Shares had teamed up to launch the product last July. The initial application from Ark 21Shares was delayed multiple times, the last time in January.
The move comes after multiple rejections and delays for spot bitcoin ETFs, with SEC chair Gary Gensler stating a clear preference for bitcoin (BTC) ETF's that trade bitcoin futures.
In early March, the SEC delayed decisions on applications for spot bitcoin ETFs from both WisdomTree and One River Asset Management. Prior to that, the commission rejected NYDIG and Global X’s spot bitcoin ETF proposals, as well as applications from Fidelity, First Trust, Kryptoin and VanEck. Is it not high time these crypto companies took SEC to court? Some of the things SEC is doing these days seem not to make sense. I won't be surprised if they turn their attention to NFT Marketplaces like OpenSea and even crypto back platforms like Social Good.
Analysts from Bloomberg Intelligence said in March that spot bitcoin ETFs could start to garner some approvals by mid-2023 given a proposed SEC rule change that redefines exchanges.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments