- The SEC has rejected Ark Investment and 21 Shares’ joint spot Bitcoin ETF application.
- The agency said the proposal did not meet the requirements of securities laws, again citing fraud and manipulative practices.
- It’s the second time the SEC has rejected an ETF proposal by two companies, after rejecting the first proposal last April.
The U.S. Securities and Exchange Commission (SEC) has rejected a proposal to list a Bitcoin Exchange Traded Fund (ETF) for the U.S. market.
so Document The U.S. Securities and Markets Watch, published Thursday, said it had rejected applications by Kathy Wood’s Ark Investments and Swiss crypto investment firm 21Shares.
Ark 21Shares Spot Bitcoin ETF was proposed to be listed on Cboe BZX Exchange.
SEC Rejects Ark 21 Shares Bitcoin ETF Again
The Commission’s order disapproving the two companies’ ETF applications is a result of BZX’s “certify that the proposal is consistent with the requirements of Section 6(b)(5) of the Securities Exchange Act”
Specifically, the exchange has failed to demonstrate that it can prevent fraud and other manipulative practices and protect those looking to invest in its products.
“The commission further said it had not established that BZX had a comprehensive oversight sharing agreement with a sizable regulated market related to physical bitcoin, the underlying bitcoin asset held by the trust. I am concluding.” provides some of the reasons for the SEC’s disapproval.
This is the second time the agency has rejected a spot Bitcoin ETF proposal by Ark Investment Management and 21Shares. The SEC denied him a similar filing in April, prompting the companies to file new filings last May.
The SEC also disapproved multiple other spot Bitcoin ETF applications, including one by Grayscale Investments, which attempted to convert the Grayscale Bitcoin Trust (GBTC) into a BTC spot ETF. The asset manager has filed a lawsuit against the agency following the agency’s June 2022 move.
