SEC Rejects Spot Bitcoin ETFs from Valkyrie and Kryptoin

by in Cryptocurrency News

Bitcoin SEC ETFs

The US SEC continues to disapprove physically-backed Bitcoin Exchange Traded Funds (ETFs). On Dec. 22, the regulator released the decisions on the requests from the exchanges NYSE Arca to trade shares of the Valkyrie BTC Fund and Cboe BZX to trade Kryptoin BTC ETF Trust.

Related: What Are Bitcoin ETFs? Which Countries Have Approved Them?

The reasons for rejections repeat themselves. The SEC finds that the exchanges didn't prove that their proposals meet the needs of the Exchange Act Section.

According to the regulator, the companies don't hold surveillance-sharing agreements with a regulated market of large size connected to the underlying or reference BTC. The SEC says it's necessary to prevent possible frauds and manipulative acts, thus protecting investors and the public interest.

Previously the regulator rejected spot Bitcoin ETFs from Vaneck and WisdomTree. Next, on Jan. 22, the SEC will reveal its decision on Skybridge BTC ETF.

However, the SEC isn't against Bitcoin futures ETFs. On October 19, it allowed the first BTC futures ETF from ProShares. Through the fund, investments are done through futures contracts.

In the case of spot ETFs, investors would have direct exposure to BTC. Several other countries including Canada, and Australia, already started to allow BTC spot ETFs.

Investors are waiting for the SEC to approve crypto spot ETFs, while the interest in crypto continues to surge. According to a report by Bloomberg, crypto funds boom this year, and even before the release of the first US futures BTC ETF, they have established global milestones.