The US Securities and Exchange Commission (SEC) has officially rejected the application for the creation of the ARK 21Shares Bitcoin Exchange Traded Fund (ETF).

On Thursday, the Securities and Exchange Commission (SEC) rejected a rule change proposed by the Chicago Board Options Exchange, Cboe or BZX Exchange to list and trade the ARK 21Shares Bitcoin (BTC) ETF. The SEC said the proposed rule change, which was originally posted for comment in the Federal Register in August 2021, would not be “intended to prevent fraudulent and manipulative activities and practices” or “to protect investors and the public interest.”

The Securities and Exchange Commission stated that the Cboe BZX exchange failed to comply with the listing requirements for a financial product under the Code of Practice, as well as the requirements of the Exchange Act. Under these restrictions, exchanges wishing to list a bitcoin ETF must have a “comprehensive co-supervisory agreement with a large regulated market for underlying or benchmark bitcoin assets.”

21Shares, a European issuer of exchange-traded products, applied for a spot Bitcoin ETF with Ark Investment Management in June 2021 to be listed on the Cboe BZX exchange under the ticker symbol ARKB. The Securities and Exchange Commission had 180 days to make a decision or open the proposal for public comment. In January 2022, the regulator extended the discussion window until April.

So far, the Securities and Exchange Commission (SEC) has not approved any U.S. listing spot cryptocurrency ETF applications, but has given the green light to investment vehicles related to BTC futures, including offerings from ProShares, VanEck and Valkyrie. . As of October 2021, 21Shares was one of the largest institutional issuers of crypto products with over $2 billion in assets under management.

Related: SEC could approve Bitcoin ETF as early as 2023

Grayscale, one of the next asset managers likely to hear the Bitcoin ETF regulator’s decision, launched a campaign in February to encourage U.S. investors to submit their comments to the SEC. The regulator is expected to make a decision to convert Grayscale from Bitcoin Trust to BTC ETF on July 6th.

Source: CoinTelegraph

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