SEC rejects two Bitcoin spot ETFs – CVBJ

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The United States Securities and Exchange Commission (SEC) has rejected two Bitcoin spot exchange-traded funds (ETFs) offered by Valkyrie and Kryptoin.

According to the SEC, Valkyrie and Kryptoin have failed to demonstrate that their proposals comply with the requirements of Section 6 (b) (5) of the Stock Exchange Act.

Specifically, according to the official document, the SEC rejected Bitcoin cash ETFs. Citing similar market manipulation issues, referring to both listing and trading of Valkyrie Bitcoin Fund and Kryptoin Bitcoin ETF Trust shares.

By the way, this is not the first time that Kryptoin has been rejected. In 2019, it did not receive the green signal from the regulatory authorities.

SEC rejected Valkyrie and Kryptoin demands

Indeed, the SEC has again denied applications for Bitcoin spot exchange traded funds (ETFs) countless times. This time it was the case with Valkyrie and Kryptoin, both of which were refuted on December 22.

After all, under the same argument it has used in the past, the SEC has found that the Valkyrie and Kryptoin funds “have not proven to be consistent in preventing fraudulent and manipulative acts and practices.” Thus, it specifies that the rejection decision responds to its desire to protect investors and the public interest.

“They have not fulfilled their obligation to show that the proposal complies with the requirements set out in the Stock Exchange Act of 1934, in section 6 (b) (5). In the United States, the rules of a national stock exchange must be designed both to prevent fraudulent and manipulative acts and practices, and to protect investors and the public interest. And due to an alleged lack of conformity, the Commission has to disapprove of this proposal. ‘

Opinion of some analysts

In this regard, Bloomberg ETF research analyst James Seyffart said he was a little surprised by the SEC’s move because he does not understand its motives.

Curiously, James Seyffart posted on Twitter an image depicting the latest Bitcoin funds that the SEC rejected. Valkyrie and Kryptoin being the last to date. Moreover, the post also shows the next on the list, which are First Trust and Skybridge, since they will have their verdict before January 22.

Likewise, Senior ETF Analyst Eric Balchunas said: “Just in time to ruin your Christmas. There could be more to come. The fact that the SEC is disapproving faster than necessary … we were optimistic about the future, but we are not confident about an approval in 2022.

Some ETF rejections

As a reminder, in November, the SEC rejected a Bitcoin cash ETF application submitted by investment firm VanEck. This was followed by the disapproval of WisdomTree’s request in early December.

In fact, last week the SEC delayed decisions on Bitcoin ETFs, offered by Bitwise and Grayscale, for an additional 45 days.

In particular, the SEC is due to rule on Anthony Scaramucci’s Skybridge Bitcoin ETF by January 22. And the decision on Fidelity’s Wise Origin Bitcoin Trust app is slated for January 27.

As a closing, the latest ruling from the U.S. Securities and Exchange Commission (SEC) means the market will not see a Bitcoin spot ETF for this year.

I say goodbye with this line from Ray Bradbury: “You have to know how to accept rejection and how to reject acceptance. “

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