A spot bitcoin ETF application was rejected by the U.S. Securities and Exchange Commission. It was originally filed by First Trust Advisors, an investment management firm, and SkyBridge, a hedge fund managed by Anthony Scaramucci.
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:
“The Commission must reject the proposal because NYSE Arca hasn’t demonstrated that the proposed rule change is intended to prevent fraudulent or manipulative acts and practices.
SkyBridge and First Trust teamed up with SkyBridge in March 2021 to file an application for a Bitcoin ETF with the SEC. SkyBridge partnered with First Trust in March 2021 to file a Bitcoin ETF application with the SEC.
“The Commission concludes that NYSE Arca did not establish a comprehensive surveillance-sharing arrangement with a regulated bitcoin market.”
The latest rejection by the SEC is not surprising considering that the agency has yet to approve a spot Bitcoin ETF. Kryptoin and Valkyrie submitted applications to the securities watchdog in December. NYDIG delayed NYDIG’s proposal until March 16, 2022. However, the SEC seems prefer to track bitcoin futures ETFs. ProShares was the first company to approve a futures-backed Bitcoin ETF. Other ETFs have been created by Valkyrie and VanEck.
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