The Securities and Exchange Commission has rejected a spot bitcoin exchange-traded fund proposed by ARK Investment Management and 21Shares.
The decision marks the second time ARK and 21Shares have attempted to get the Cboe BZX Exchange off the ground, only to be denied by the commission. The SEC rejected the initial proposal from the companies to establish a bitcoin ETF last April.
“The commission concludes that BZX has not met its burden under the Exchange Act,” the SEC said in a statement that echoed prior rulings.
Thus far, the SEC has yet to approve any proposal for a bitcoin ETF, for years citing opacity in the underlying bitcoin market and concerns over possible price manipulation. Grayscale, the subsidiary of the Digital Currency Group that manages the Grayscale Bitcoin Trust investment fund, sued the SEC last year over its lack of approval of its own spot ETF application. The suit remains ongoing.
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