The U.S. Securities and Exchange Commission (SEC) has rejected applications from the NYSE Arca and Cboe BZX Exchanges to create Bitcoin spot ETFs due to non-compliance with the U.S. Exchange Act.
According to the statement, the SEC
rejects the application of the NYSE Arca exchange to change the listing and trading rules for ETF shares for NYDIG bitcoin. The decision by the supervisory authority came several months after the SEC set a lengthy period for approving or rejecting proposals. In addition, the regulator
rejected application of the Cboe BZX Exchange to change the listing and trading rules for shares from ETF to Bitcoin Global X Bitcoin Trust. In both cases, the SEC stated that both funds did not meet the minimum legal requirements required for the securities exchange platform to operate properly in the US.
“The Commission came to the conclusion that [NYSE Arca и BZX] did not fulfill [свои] obligations under the US Exchange Act and SEC rules to demonstrate that [их] suggestions [соответствуют] section 6(b) of the US Exchange Act. In particular, the requirement that stock exchanges are required to prevent fraudulent activities and market manipulation to protect investors and the public interest has not been met.”
The SEC provided arguments similar to those used in rejecting other applications to launch cryptocurrency ETFs. So, last year, the asset management company WisdomTree also received a refusal from the department to launch a direct ETF for bitcoin. In November, the regulator rejected an application from VanEck.
In January, the US Securities and Exchange Commission rejected Fidelity’s application to launch a cryptocurrency ETF called the Wise Origin Bitcoin Trust. Last year, the US Securities and Exchange Commission did not approve the launch of an exchange-traded fund (ETF) for bitcoin from WisdomTree. In 2021, the regulator delayed the decision several times. Although the SEC has yet to approve any ETFs with direct access to cryptocurrencies, in the fall it allowed the launch of bitcoin futures ETFs. In October, this new investment product was launched in the US by ProShares.
Source: Bits
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