The biggest year for crypto is coming to an end and no Bitcoin ETF seems to be in sight for American investors. The U.S. Securities and Exchange Commission has continued to make noise about this investment product, having rejected applications for two more expected ETFs earlier today.
According to the order published by the Financial Regulator, Valkyrie and Cryptoin was quoted on the same basis as in previous denials.
In particular, the SEC found that the NYSE Arca and Cboe BZX Exchange, the proposed rule changes for listing, respectively b) (5). ”
The Commission further stated that this includes, in particular, the requirement that the rules of national exchanges “are designed to prevent fraudulent and manipulative acts and practices” and “protect investors and the public interest”.
An exchange traded product that gives investors access to the underlying assets without having to hold them directly. This is particularly useful with Bitcoin and other cryptocurrencies, which require a secure technical level, especially in large quantities.
While in Europe and even in the neighboring countries of the USA all the rage is, the country’s supervisory authorities are reluctant to launch a physically backed Bitcoin ETF for fear of manipulation, market and price fluctuations.
However, the SEC has approved the launch of a number of Bitcoin futures ETFs backed by the Chicago Mercantile Exchange (CME) derivatives markets. Even with record starts, they failed to impress investors as many described the product as “not retail-friendly due to the high cost of contract rotation,” up to around 5-10%.
Despite mounting pressure from enthusiasts, the first U.S. spot BTC ETF is unlikely to hit the market this year. However, some key products will be decided early next year, which serves as a ray of hope for some.
https://twitter.com/JSeyff/status/1473789604444659721?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener” data-wpel-link=”externalA SEC decision on Anthony Scaramucci’s Bitcoin Skybridge ETF will be made by Jan 22nd, while Fidelity’s Origin Wise Bitcoin Trust will be decided by Jan 27th.
Filing decisions from leading digital asset managers Bitwise and Grayscale were postponed by the SEC for 45 days last week.
While the SEC rejected the spot Bitcoin ETFs proposed by VanEck and WisdomTree last month, it has also rejected all innovative products such as leveraged or inverse backed futures ETFs.