U.S. The Securities and Exchange Commission, or SEC, has formally rejected an application for a Bitcoin spot trading fund, First Trust SkyBridge, following several delays.

On Thursday, the Securities and Exchange Commission (SEC) rejected a proposed rule change for the New York Stock Exchange, or NYSE, Arca to list and trade shares in the First SkyBridge Bitcoin ETF Trust. The SEC said any rule change in favor of ETF approval would not be “intended to prevent fraud and manipulative activity and practice” or “to protect investors and the public interest.”

The decision comes after SkyBridge first listed a Bitcoin ETF on the New York Stock Exchange in March 2021. The Securities and Exchange Commission twice set a longer period to approve or disapprove a proposed ETF rule change in July and November before making a decision. on Thursday.

In its rejection, the Securities and Exchange Commission stated that the New York Stock Exchange did not meet the requirements for listing a financial product in accordance with its recommendation, as well as the rules of the Stock Exchange Act. Under these restrictions, exchanges wishing to list a BTC ETF will need a “comprehensive share monitoring agreement with a large-scale regulated market for underlying or benchmark bitcoin assets.”

NYSE Arca used the example of a $ 10 million market order to say that buying and selling large amounts of bitcoin (BTC) would have “little market impact.” The exchange also cited Tesla’s $ 1.5 billion BTC purchase in February as an example of accessing cryptocurrencies through the company’s shares, arguing that another investment tool with access to BTC is needed instead of “imperfect bitcoin authorizations”. which only provides “partial disclosure” Bitcoin comes with additional risk. ”

The commission rejected the allegations, citing similar reasons for Bitcoin ETF rejection by asset manager VanEck in November and WisdomTree in December. So far, the Securities and Exchange Commission (SEC) has not approved any ETFs with direct exposure to crypto, but has given the green light to applications related to BTC futures, including those from ProShares and Valkyrie.

Related: ETFs Listed – What’s Next for Bitcoin?

By March 16, the New York Digital Investment Group (NYDIG) is expected to make its own decision on the implementation of the Bitcoin ETF. The application is still under consideration after it was delayed on Saturday.

Source: CoinTelegraph