The US Securities and Exchange Commission (SEC) has once again rejected the Spot Bitcoin ETF application. It was previously filed by investment management company First Trust Advisors and Anthony Scaramucci-led hedge fund Skybridge.
- In a statement published on Thursday (January 20, 2022), the SEC said the reason for the rejection was that they failed to meet the requirements.
- According to an excerpt from the SEC document:
“Since NYSE Arca has not demonstrated that its proposed rule change is designed to prevent fraudulent and manipulative acts and practices, the Commission must reject the proposal.”
- Back in March 2021, Skybridge partnered with First Trust to file a bitcoin ETF application with the SEC. On May 25, the commission began an official review of the ETF proposal.
- Later in July, the SEC previously postponed its decision on the application until August 25, and delayed another to November 2021.
A statement from the SEC document said:
“The Commission further concludes that NYSE Arca has not established that it has a comprehensive surveillance-sharing agreement with a regulated market of significant size relating to bitcoin.”
- Meanwhile, the SEC’s latest rejection is not surprising, given that the agency has not yet given the green light to a spot bitcoin ETF product. In December, the securities watchdog rejected an application from Valkyrie and Kryptoin. NYDIG’s proposal has been postponed until March 16, 2022.
- However, the SEC shows a preference for ETFs that track bitcoin futures. ProShares made history as the company with the first approved futures-backed bitcoin ETF in the United States. Others have come from VanEck and Valkyrie.
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