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Proponents of the money had argued that a existent surveillance sharing statement with CME would beryllium capable to support investors.
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The SEC has erstwhile again rejected a connection to database the ARK 21 Shares Bitcoin ETF connected equities speech Cboe BZX, according to Jan. 26 statement from the SEC. The SEC rejected a akin connection successful April, 2022.
The SEC has conscionable present erstwhile again rejected ARK's and 21Shares spot bitcoin, $BTC ETF listing.
— unusual_whales (@unusual_whales) January 26, 2023The projected ETF would person been managed jointly by Cathie Wood’s Ark Investment Management and 21Shares if it had been approved. The intent of the projected money was to let investors to summation vulnerability to Bitcoin’s terms wrong the confines of the regulated banal market.
The Cboe BZX Exchange had primitively asked to list the ETF successful June, 2021. After the archetypal exertion was rejected successful 2022, it reapplied and made caller ineligible arguments successful an effort to get the money approved.
In its 2nd application back successful May 2022, the Cboe BZX Equities Exchange argued that it has a “comprehensive surveillance-sharing statement with a regulated marketplace of important size” that tin forestall manipulation of prices. The ARK 21Shares Bitcoin ETF should truthful beryllium allowed to beryllium listed connected the exchange. According to the application, this surveillance sharing statement is with the Chicago Mercantile Exchange (CME), wherever Bitcoin futures contracts are traded.
The exertion besides argued that astir currency and commodity spot markets are unregulated, but this does not usually mean that an exertion volition beryllium rejected for that crushed alone.
Related: SEC’s ‘one-dimensional’ attack is slowing progress: Grayscale CEO
In its response, the SEC rejected these arguments. It stated that the surveillance sharing statement betwixt Cboe BZX Equities Exchange and the CME does not use to spot Bitcoin, since lone Bitcoin futures contracts are traded astatine CME.
The SEC besides claimed that having a surveillance sharing statement is not ever necessary, but if specified an statement does not exist, past the speech indispensable “establish that different means to forestall fraudulent and manipulative acts and practices volition beryllium sufficient.” It said that the speech has not demonstrated this point, truthful it is not allowing the ETF to beryllium listed.
The SEC has truthful acold not approved immoderate spot Bitcoin ETF to beryllium listed connected an exchange. Grayscale Investment Trust is seeking to person its Bitcoin Trust into a spot Bitcoin ETF, and it has sued the SEC for rejecting its proposal. Oral arguments are scheduled to beryllium heard for the Grayscale lawsuit successful March 2023.
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