The SEC has rejected a spot Bitcoin ETF offer from 21Shares and ARK Investments for the second time.
For the second time, the US Securities and Exchange Commission (SEC) has rejected a joint request by Ark Investment Management and 21Shares to list a spot Bitcoin exchange-traded fund (ETF).
Denial of SEC’s Request by ARK Investment Management and 21Shares
The SEC turned down the two companies’ request, citing that the Cboe BZX Exchange, where the ETF will be listed, failed to demonstrate that its proposal surrounding fraud and other malicious practices prevention was consistent with the requirements.
An attempt by Cathie Wood’s Ark Investment Management and Swiss investment products provider 21Shares to list a spot Bitcoin ETF in the US was first rejected by the SEC in April. The two companies decided to try once again by making a new application in May, but the result did not change.
US markets rejected an application for an ETF that invests directly in Bitcoin, but approved a number of funds covering the BTC futures market.
Grayscale Investments, one of the firms whose proposal was rejected, decided to take legal action regarding the SEC’s decision, which will begin on March 7 for the verbal discussions.