The U.S. Securities and Exchange Commission (SEC) has turned down another attempt to launch a spot Bitcoin (BTC) exchange-traded fund proposed by Cathie Wood’s ARK Invest and global crypto ETF provider 21Shares.
In a newly issued order, the SEC is rejecting a proposal that would allow the ARK 21Shares Bitcoin ETF to be listed on the Chicago Board Options Exchange’s (CBOE) BZX Exchange.
ARK Invest first sought the SEC’s approval for a spot Bitcoin ETF in June 2021, but the financial watchdog denied the application, citing a lack of proper investor protections.
The firm made another attempt to secure the regulatory agency’s approval in May 2022. The CBOE filed a request to the SEC for approval of a rule change that would allow the listing of the investment product.
The regulator stated in a January 26th order that there was no evidence that the proposal was consistent with standards meant to protect traders’ interests and prevent fraud.
The CBOE’s claim that it has a comprehensive surveillance-sharing agreement with a regulated market of significant size to prevent fraudulent and manipulative acts did not persuade the SEC.
“BZX contends that, if approved, the proposed ETP would protect investors and the public interest. These potential benefits must be considered in the larger context of whether each proposal meets the Exchange Act’s applicable requirements.
Because BZX has not demonstrated that its proposed rule change is designed to prevent fraudulent and manipulative acts and practices, the Commission must disapprove the proposal.”
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