Another Bitcoin bear market and spot ETF rejection by US SEC has left market participants depressed.
The Securities and Exchange Commission of the United States gave the spot Bitcoin ETF proposal from investing behemoth Fidelity a green light on January 27.
SEC’s rejection of BTC Spot ETF
The SEC denied Fidelity’s spot ETF on Thursday morning, according to a recently published document. The regulatory authority has highlighted concerns about cryptocurrency-related scams, manipulation, and investor protection in recent months. While the SEC has raised similar concerns in the past, they appear to have tightened their grip on crypto rules recently.
The SEC’s rejection of a Bitcoin ETF proposal put forth by the Winkelvoss brothers Cameron and Tyler, owners of the Gemini exchange, goes back to their rejection of a Bitcoin ETF proposal put forward by the Winkelvoss brothers Cameron and Tyler, owners of the Gemini exchange. The SEC warned in a statement that any rule modification in favor of sanctioning the ETF would not be intended to prevent “fraudulent and manipulative activities and practices” or to “protect investors and the public interest.”
The SEC went on to say regarding the BZX exchange:
“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.”
Following Fidelity’s application in March 2021, the regulatory body extended its review window to accept or disapprove the offering in July and then in November.
The US Securities and Exchange Commission (SEC) had already rejected a proposed spot ETF centered on Bitcoin from First Trust and Skybridge Capital on identical reasons. Stone Ridge and NYDIG are scheduled to make a decision on an ETF filing by mid-March.
The Spot ETF Tussle Continues
The Securities and Exchange Commission (SEC) authorized the first-ever Bitcoin futures-backed ETF, which was launched by ProShares on the New York Stock Exchange in October 2021. Following that, the Valkyrie Bitcoin Strategy ETF and the VanEck Bitcoin Strategy ETF were approved.
BTC’s price rose about 25% after the futures
ETF approval in October, and the optimistic narrative around the top crypto asset at the moment also helped it achieve an all-time high of $69,000 in November.
However, it appears that the SEC has a negative attitude toward BTC spot ETFs, since the agency denied investment firm Kryptoin’s plan to market a spot Bitcoin ETF in December 2021. WisdomTree’s ideas for a spot Bitcoin ETF were similarly denied.
Notably, Bitcoin’s price remained below the important $40,000 level, with the commodity trading at $36,664.37 at press time, down 3.45%. The coin’s trajectory has been influenced by recent weekend losses, as well as BTC flash collapses during January. At the time of writing, BTC was down 47.13% from its all-time high, with a 1-year ROI against USD of only +18.66 %.
