SEC Officially Rejects Application for Bitcoin ETF Introduced by ARK Invest

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SEC Officially Rejects Application for Bitcoin ETF Introduced by ARK Invest By Angel Di Matteo @shadowargel

The rejection of SEQ This is not surprising, since the answer he gave to ARK Invest is the same that has been offered to others interested in launching a Bitcoin ETFs.

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The US Securities and Exchange Commission (SEC) officially rejected the application submitted by ARK Invest to launch your own ETFs based on Bitcoin.

SEC Rejects Application for ARK Invest Bitcoin ETF

This was reported today by the SEC in a recently published statement, in which it alleges that the request filed in June of last year by ARK Invest does not proceed, since the product and the companies responsible do not meet the requirements requested by the agency to prevent fraudulent acts and/or market manipulation.

Originally ARK Invest, investment company of Cathie Wood, introduced this application in alliance with 21Shares as a sponsor, which planned to launch the ARK 21Shares Bitcoin ETF to be listed on the Chicago Stock Exchange (CBOE). In this case, the custodian of the assets would be coinbase and the same ARK Invest would handle all the marketing associated with the product in question.

In relation to the rejection of said request, the SEC indicated that the exchanges can comply with the aforementioned obligation, provided that they demonstrate that they have a comprehensive shared surveillance agreement with a large regulated market related to the underlying or reference Bitcoin assets. . The latter can be interpreted as the regulatory body basically not approving the product because the cryptocurrency market is beyond its supervision.

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Another rejection for the same reasons

Those who closely follow the position of the SEQ You probably feel that this verdict was more than expected, as this has been the same reason you have given to other reputable companies whose requests to introduce a Bitcoin ETFs.

Entities such as NYDIG, Global X, Fidelity, First Trust, Krypton, Van Eck and WisdomTree, it is expected that the others that are awaiting a response will continue along this path, since none of the requests has given a satisfactory answer to the doubts that the SEQ about these types of products.

Among the people who have strongly raised their voices as an act of protest against the attitude of the SEQ are the main directors of VanEck and of Grayscale. In Jan Van Eck’s case, he claims the body is purposely withholding the possibility of accepting a ETFs fully based on Bitcoin waiting to have greater control over the digital currency market. While, for Michael Sonnenshein, the regulator would be acting illegally by continuing to reject this type of proposal, for which he threatens to sue the body for discriminatory treatment.

Finally, everything seems to indicate that the race for the first Bitcoin ETFs in the US market is still far from over, so analysts say that perhaps this can see the light if conditions change and the SEC has a greater presence on the crypto market.

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Source: Decrypt

Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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