The Securities and Exchange Commission (SEC) has rejected the physical Bitcoin ETF plans of crypto asset managers Valkyrie and Kryptoin.
SEC Rejects Valkyrie and Kryptoin Spot Bitcoin ETF Applications
The Securities and Exchange Commission (SEC) of the United States has rejected two more physically-backed Bitcoin exchange-traded funds (ETFs) proposed by Valkyrie and Kryptoin.
Both verdicts, which can be seen here and here, were issued on Wednesday, with the Securities and Exchange Commission using the same justifications that it had previously used to deny prior applications.
The NYSE Arca and Cboe BZX Exchange, which filed proposed rule modifications to list and trade Valkyrie and Kryptoin products, “failed to demonstrate that their proposals are compatible with the requirements of Exchange Act Section 6(b)(5),” according to the Commission.
SEC has consistently rejected any attempt to launch a Bitcoin ETF
According to the Securities and Exchange Commission, this is especially related to the need that a national securities exchange to be “designed to prevent fraudulent and manipulative acts and practices” and “to safeguard investors and the public interest.”
An ETF is a type of investment instrument in which investors can purchase shares that track the price of an underlying asset. A Bitcoin ETF, as the name implies, would provide exposure to Bitcoin while eliminating the need to purchase the cryptocurrency from an exchange and manage the private keys.
The Securities and Exchange Commission has consistently rejected or delayed any attempts to launch a Bitcoin ETF, despite the fact that such products are available to American investors north of the border in Canada. However, earlier this year, the regulator approved six Bitcoin futures ETFs linked to the Chicago Mercantile Exchange’s (CME) derivatives markets.
In 2021, there will be no Bitcoin ETF
The new move by the Commission implies that the market will not see a spot Bitcoin ETF this year, with the next significant dates coming next month.
Kinda surprised they did this to be honest but here we go anyway. First Trust/Skybridge decision is due 1/22 followed by @Fidelity on 1/27. pic.twitter.com/a2CuIHb917
— James Seyffart (@JSeyff) December 22, 2021
The Securities and Exchange Commission is expected to make a decision on Anthony Scaramucci’s Skybridge Bitcoin ETF application by January 22, with a decision on Fidelity’s Wise Origin Bitcoin Trust application coming on January 27.
The regulator rejected a spot Bitcoin ETF proposal filed by investment giant VanEck in November, followed by WisdomTree’s rejection in early December.
The SEC deferred decisions on Bitcoin ETFs proposed by digital asset managers Bitwise and Grayscale for another 45 days last week.
