The U.S. Securities and Exchange Commission, or SEC, has rejected applications for Bitcoin spot exchange-traded funds from New York Digital Investment Group and fund manager Global X after postponing a decision several times last year.
According to two separate filings Thursday, the SEC rejected proposed rule changes from the New York Stock Exchange’s Cboe BZX Exchange and Arca to list and trade shares of the Global X Bitcoin Trust and the New York Digital Investment Group’s Bitcoin Exchange-traded Fund, or ETF, respectively. The SEC said NYSE Arca and Cboe BZX failed to meet the burden under the Exchange Act and SEC Rules of Practice showing that the ETF will be “designed to prevent fraudulent and manipulative activities and practices” and “protect investors and the public interest.” ”
The New York Digital Investment Group, or NYDIG, and Global X filed with the SEC for a Spot Bitcoin (BTC) ETF in June and August 2021, respectively, but the commission has set longer time periods to approve or reject the proposed rule change and opened applications several times. for public comment before making a decision on Thursday. The rejections follow similar rulings for BTC ETF spot orders from WisdomTree and VanEck.
The SEC rejected NYDIG’s Bitcoin Spot ETF offer this morning. — Pomp (@APompliano) March 11, 2022
Although the US regulator has yet to approve any spot Bitcoin ETF applications from financial institutions, Bitcoin futures-related investment vehicles have had more success. Many companies have applied for “strategic” BTC ETFs after SEC Chairman Gary Gensler said in August 2021 that it would be more open to accepting exchange-traded funds based on cryptocurrency futures rather than outright opening. The commission has since approved ETFs linked to BTC futures from Valkyrie, ProShares and VanEck.
Related: SEC Chairman Hints Bitcoin ETF Doesn’t Exist Yet, But Links To ‘Digital Review’ For The Future
With applications for crypto ETFs from other firms still under development, at least one company is showing great initiative to seemingly put pressure on regulators. After the SEC delayed making a decision on whether to approve Grayscale’s conversion of its Bitcoin Trust into a spot BTC ETF, the asset manager launched a campaign urging US investors to submit comments to the SEC. The regulator is expected to make a decision on the ETF by July 6th.