The SEC Has Rejected ARK 21Shares’ Proposal For A Spot Bitcoin ETF

21Shares submitted the spot Bitcoin ETF application with Ark Investment Management in June 2021 for listing on the Cboe BZX Exchange.

The Securities and Exchange Commission (SEC) of the United States has formally rejected the application for the ARK 21Shares Bitcoin exchange-traded fund (ETF).

The SEC denied a proposal from the Chicago Board Options Exchange, or Cboe, BZX Exchange, to list and trade shares of the ARK 21Shares Bitcoin (BTC) ETF in a Thursday filing. The SEC stated that the proposed rule change, which was first published in the Federal Register for public comment in August 2021, would not be “intended to deter fraudulent and manipulative conduct and practices,” nor would it “protect investors and the public interest.”

According to the SEC, the Cboe BZX Exchange failed to meet the standards for listing a financial product under its rules of practice and the Exchange Act. Exchanges who want to establish a Bitcoin ETF must have “a complete surveillance-sharing agreement with a regulated market of considerable size relating to the underlying or reference Bitcoin assets,” according to the regulations.

In June 2021, 21Shares, a European exchange-traded product issuer

Filed an application with Ark Investment Management for a spot Bitcoin ETF to be listed on the Cboe BZX Exchange with the ticker ARKB. The SEC has 180 days to make a decision or invite public feedback on the offering. The regulatory body’s deliberation period was extended until April 2022 in January 2022.

To yet, the SEC has not authorized any spot crypto ETF applications for stock listing in the United States, but it has approved investment vehicles tied to Bitcoin futures, such as ProShares, VanEck, and Valkyrie’s offerings. With more than $2 billion in assets under control as of October 2021, 21Shares was one of the major institutional crypto product issuers.

Grayscale, one of the next asset managers to hear from the SEC on their spot Bitcoin ETF, launched a campaign in February to encourage U.S. investors to submit comments to the regulatory body. Grayscale’s Bitcoin Trust is anticipated to be converted into a spot BTC ETF by July 6, according to the regulator.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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