In June 2021, 21Shares and ARK filed a petition for the Chicago Board Options Exchange BZX Exchange to establish a spot BTC ETF. The SEC of the US has formally rejected the registration for the ARK 21Shares BTC ETF.
SEC Rejects Spot BTC ETF Application
The Securities and Exchange Commission denied a requested rule modification from the CBOE to allow ARK 21Shares BTC Exchange Traded Fund to be listed and traded. The Securities and Exchange Commission stated that the suggested new regulation, which was first filed in Federal Register for feedback last year, will not be intended to deter deceptive and misleading conduct and activities, nor will it safeguard the investors and national interest.
When it came to listing a monetary instrument, the Chicago Board Options Exchange BZX Exchange failed to comply with the Exchange Act and the Security and Exchange Commission’s norms of operation. According to the regulations, exchanges who want to establish a BTC ETF must have a complete monitoring contract with a supervised marketplace of considerable size relating to the underpinning or benchmark BTC investments.
21Shares, a European ETP issuer, filed a petition with ARK in June last year to launch the spot BTC ETF beneath the symbol ARKB on the Chicago Board Options Exchange BZX Exchange.-The Security and Exchange Commission has 180-days timeframe to choose or invite public feedback on the offering. It took the governing agency longer to think about things in January this year so that they could think about them until April.
The Security and Exchange Commission hasn’t yet authorized any petition for a spot cryptocurrency Exchange Traded Fund to list in the US. However, it has allowed investment strategies tied to Bitcoin futures and offerings from Valkyrie, ProShares, and VanEck. With over $2B in cryptos under control during October last year, 21Shares was among the significant institutional cryptocurrency issuers.
A program started in February by Grayscale, among the upcoming asset management companies likely to get a choice from the Securities Exchange Commission on the spot BTC ETF, was meant to get people in the US to write to the Securities and Exchange Commission and tell them what they think. According to the regulators, Grayscale’s BTC Trust is anticipated to be converted into the spot Bitcoin Exchange Traded Fund by 6th July.
Ark Invest Applied for a BTC ETF With 21Shares Last Year
The cryptocurrency slump, according to Wood, has enhanced the odds of a BTC Exchange-Traded Fund receiving regulatory clearance. Ark Investment Management is the latest company to apply to a BTC ETF.
ARKB is the ticker symbol for the Exchange-Traded Fund exchanged on the CBOE BZX Exchange, based on a registration made with the SEC on 28th June in cooperation with the European ETP issuer 21Shares. The Exchange-Traded Fund will be tracking the S&P Bitcoin index, with Bitcoin held directly by the trust that underpins the Exchange-Traded Fund. The cryptocurrency market has praised the submission.
Although the Securities Exchange Commission has denied every registration for a BTC Exchange Traded Fund, Wood just suggested that with the latest cryptocurrency pullback, the possibilities of an Exchange Traded Fund are under-approved by the regulators. The SEC delayed judgments on two major Bitcoin ETFs earlier this month, extending the review process for VanEck and Valkyrie Digital Assets’ respective Bitcoin ETFs by 45 days each.