The SEC rejected the listing, saying it lacked sufficient protections against fraud.
back in May 2022, the Cboe BZX Equities Exchange argued that it has a “comprehensive surveillance-sharing agreement with a regulated market of significant size” that can prevent manipulation of prices. The ARK 21Shares Bitcoin ETF should therefore be allowed to be listed on the exchange. According to the application, this surveillance sharing agreement is with the Chicago Mercantile Exchange , where Bitcoin futures contracts are traded.
The application also argued that most currency and commodity spot markets are unregulated, but this does not usually mean that an application will be rejected for that reason alone.In its response, the SEC rejected these arguments. It stated that the surveillance sharing agreement between Cboe BZX Equities Exchange and the CME does not apply to spot Bitcoin, since only Bitcoin futures contracts are traded at CME.
The SEC also claimed that having a surveillance sharing agreement is not always necessary, but if such an agreement does not exist, then the exchange must “establish that other means to prevent fraudulent and manipulative acts and practices will be sufficient.” It said that the exchange has not demonstrated this point, so it is not allowing the ETF to be listed.
The SEC has so far not approved any spot Bitcoin ETF to be listed on an exchange. Grayscale Investment Trust is seeking to convert its Bitcoin Trust into a spot Bitcoin ETF, and it has sued the SEC for rejecting its proposal. Oral arguments are
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SEC Rejects Ark 21Shares Spot Bitcoin ETF for Second TimeThe U.S. markets regular has rejected a score of ETF applications to invest directly in bitcoin, while approving a number of funds tracking the BTC futures market.
Read more »
SEC bats down ARK's and 21Shares' second bitcoin ETF proposalARK Investment Management and 21Shares were denied for a second time by the SEC on a proposed bitcoin exchange-traded fund.
Read more »
Spot Bitcoin (BTC) ETF Application by Ark and 21 Shares Rejected by SECThe SEC has shot down a spot Bitcoin (ETF) exchange-traded fund application from Ark and 21Shares once again
Read more »
Bitcoin, Ethereum Technical Analysis: ETH Falls Below $1,600 as Relative Strength Sinks – Market Updates Bitcoin NewsEthereum moved below $1,600 on Jan. 25, with bears selling previously overbought cryptocurrencies. Bitcoin also fell below $23,000.
Read more »
Cboe Plans to Go Beyond Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH) and Litecoin (LTC)Cboe made another foray into cryptocurrency market following acquisition of ErisX
Read more »
Tesla's Q4 Balance Sheet Shows Bitcoin Holdings Worth $184 Million – Featured Bitcoin NewsTesla's latest balance sheet shows bitcoin holdings worth $184 million. The company did not sell any $BTC in the fourth quarter. crypto cryptocurrency
Read more »