The US Securities and Exchange Commission (SEC) has rejected Bitcoin spot ETFs from ARK and 21 shares. January 26th filing.
Cboe BZX intended to list the planned ETF. The exchange’s proposed rule change that would have allowed it to list was categorically rejected today.
The SEC said it failed to demonstrate that Cboe BZX could comply with certain sections of the securities laws. While Cboe BZX’s proposal specifically addresses oversight concerns, regulators said the exchange has not shown that it can prevent fraud and market manipulation or protect investors.
Regulators rejected Cboe BZX’s previous proposal in April 2022. The exchange filed a follow-up proposal with the SEC just a month later in May 2022. The SEC extended the deadline for that decision today before finally dismissing the proposal.
If Cboe BZX’s proposal was successful, the resulting ETF would have been managed by Ark Invest and 21 Stocks, an investment management firm led by Wall Street veteran Kathy Wood. Cboe BZX would have been listed on its own exchange.
The SEC has rejected many previous Bitcoin spot ETF proposals for virtually the same reason. Regulators rejected WisdomTree’s and VanEck’s filings in October and November of last year, respectively. Fidelity, SkyBridge, etc. were also rejected.
The most notable and persistent ETF applicant is undoubtedly Grayscale, which is actively trying to persuade the SEC to allow the conversion of existing Bitcoin trusts into exchange-traded funds. I am in court for
So far, US regulators have not approved a Bitcoin Spot ETF. However, the SEC has approved various Bitcoin futures ETFs from October 2021 onwards.