SEC Rejects Another Set of ETF Applications

Two more physically-backed Bitcoin exchange-traded funds have been denied release by The U.S Securities and Exchange Commission (SEC).

Both were proposed by Valkerie and Kryptoin, with the ruling coming on Wednesday from the SEC who used similar rhetoric with the other rejected applications in the past.

According to the Commission, NYSE Arca and Cboe BZX Exchange, “…failed to demonstrate that their proposals are consistent with the requirements of Exchange Act Section 6(b)(5)."

The SEC claimed that this comes from the measure of a national securities exchange being, “designed to prevent fraudulent and manipulative acts and practices,” and “to protect investors and the public interest.”

This is not the first time The SEC has thrown out a Bitcoin ETF application, even as residents of Canada were given access to similar investment vehicles, earlier this year.

Americans are however allowed to participate in a Bitcoin futures ETF tied to Chicago Mercantile Exchange’s (CME) derivatives markets.

The latest update on Spot Bitcoin ETF’s pushes its chances to get approved this year to zero with all eyes now moving towards 2022.

The SEC will rule on another pair of Bitcoin ETF’s next month as Anthony Scaramucci’s Skybridge and Wise Origin Bitcoin Trust applications are up for a decision before the 27th of January.

In November, the regulator rejected a spot Bitcoin ETF application filed by investment firm VanEck, with WisdomTree’s filing failing l in December. Just last week the commission delayed Bitwise and Greyscale filings on Bitcoin ETFs as well.

While the approval of Bitcoin Futures ETF has not led to the quick approval of a spot ETF, this should not dissuade investors, as the Futures ETF took over 2 years to be approved by the SEC.