Almost a year after the application was introduced in 2021, the SEQ formally rejected the proposal of Sky Bridge Capital citing concerns about possible price manipulation and few guarantees for investors.
The US Securities and Exchange Commission (SEC), the main regulator in this area, officially rejected the proposal for a fund listed on the Stock Exchange (ETF) based on Bitcoin proposed by sky bridge capital, company run by Anthony Scaramucci.
SEQ reject request for Bitcoin ETFs introduced by Sky Bridge Capital
Originally sky bridge filed the respective request in March 2021, just at the time when the manifest interest by investment funds in launching a ETFs based directly on Bitcoin. However, this proposal was rejected like others presented during the same period, among which the one presented by VanEck.
According to information published by the SEC, the application of sky bridge was rejected for the same reasons that others of the same type have failed, since the risks associated with fraud and price manipulation are cited, since the price of Bitcoin It comes mainly from its listing on the main international exchanges, which are susceptible to volatility due to large movements of capital in very short periods of time.
In this case, sky bridge entered the request of the hand with NYSE to list and trade the corresponding fund. Given this, the SEQ indicated that the proposed changes did not address the aforementioned doubts and concerns, since they did not guarantee adequate protection for investors in the event of said irregularities.
No changes in posture
The new decision made by the SEQ It goes along the same lines as his pronouncements on other similar proposals. Therefore, everything seems to indicate that the organization has not yet changed its perspective on ETFs based in Bitcoin.
Let us bear in mind that the body took a step forward in October of last year after approving ETF’s based on futures Bitcoin, however, these types of products are subject to other rules and principles, so they are not as close an approximation to digital currencies for traditional investors.
Critics assure that although accepting ETF’s based on futures BTC are an important step, the allegations for which it does not accept those funds based on the digital currency would technically also affect the market for the derivatives mentioned above. Therefore, it is considered that if it continues along this line, the regulator would be wasting very valuable business opportunities that other countries are already taking advantage of.
The race for the first Bitcoin ETFs in the US continues
Although the prospects are not at all favorable for the other applicants who are following this same route, they are still firm and await the verdict of the SEQ to find out whether or not your requests for a Bitcoin EFT.
At this point, entities such as Galaxy Digital, Fidelity, ARK Invest and other reputable companies, which aspire to be the first entities to launch the first ETFs fully based on digital currency.
Angel Di Matteo version / DailyBitcoin
Picture of unsplash
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.