US SEC Rejects Kryptoin, Valkyrie Bitcoin ETFs


After authorising futures-backed bitcoin funds in October, the US Securities and Exchange Commission refused two plans to create bitcoin exchange-traded funds, a shock to market players who had thought the agency would approve the endeavour.

After authorising futures-backed bitcoin funds in October, the US Securities and Exchange Commission refused two plans to create bitcoin exchange-traded funds, a shock to market players who had thought the agency would approve the endeavour.

Both the plans to list and trade shares of Valkyrie Bitcoin Fund and the Kryptoin Bitcoin ETF Trust failed to fulfil the markets regulator’s threshold, according to a notification dated Wednesday.

The SEC stated that “(these plans) do not satisfy the criteria of being designed to prevent fraudulent and manipulative acts and practises, as well as to safeguard investors and the public interest.”

SEC Yet To Approve Application For BTC ETF

The ProShares Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF, both based on bitcoin futures, were authorised by the SEC in October and debuted on Wall Street the same month.
However, an application for a spot bitcoin ETF has yet to be approved by the regulator.

Last month, the SEC denied VanEck’s application to launch a spot bitcoin fund, and on December 17, it postponed a decision on Grayscale Bitcoin Trust’s identical request.

ETFs are investment vehicles that track stock baskets and have grown in popularity as a result of their cheaper expenses. CFA James Seyffart posted a meme on the microblogging site picturizing SEC as a Demon killing Bitcoin ETFs one by one by rejecting.

A Bitcoin ETF, which gives exposure to the digital currency, attempts to eliminate the burden of purchasing Bitcoin through an exchange and keeping private keys.
The SEC has long sought permission for these products from industry groups and stock exchanges.

Democratic SEC Chair Gary Gensler and investor advocates, on the other hand, are concerned about a perceived lack of regulatory supervision and surveillance, which they believe increases the risk of fraud and manipulation.

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