The U.S. Securities and Exchange Commission (SEC) has rejected two more physically-backed Bitcoin exchange-traded funds (ETFs) proposed by Valkyrie and Kryptoin, respectively.
Both decisions, which can be found here and here, came on Wednesday, with the SEC providing the same arguments it used in the past when it rejected other applications.
According to the Commission, NYSE Arca and Cboe BZX Exchange, which filed respective proposed rule changes to list and trade Valkyrie and Kryptoin products, “failed to demonstrate that their proposals are consistent with the requirements of Exchange Act Section 6(b)(5)."
The SEC stated that this relates specifically to the requirement that a national securities exchange must be “designed to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest.”
An ETF is an investment vehicle that allows investors to buy shares that track the price of an underlying asset. A Bitcoin ETF, as the name suggests, would give exposure to Bitcoin, saving the hassle of purchasing the cryptocurrency from an exchange and managing the private keys.
The SEC has repeatedly rejected or delayed all attempts to launch a Bitcoin ETF, even though American investors can access such products North of the border in Canada. Earlier this year, the regulator, however, greenlit several Bitcoin futures ETFs tied to Chicago Mercantile Exchange’s (CME) derivatives markets.
No Bitcoin ETF in 2021
The Commission’s latest move means that the market will not see a spot Bitcoin ETF this year, with the next important dates coming next month.