SEC Rejects Spot Bitcoin ETF Applications From NYDIG And Global X

The U.S. Securities and Exchange Commission, or SEC, has rejected applications for spot Bitcoin-traded funds from New York Digital Investment Group and fund manager Global X after delaying a decision several times over the past year.

In two separate filings on Thursday, the SEC disapproved proposed rule changes from the Cboe BZX Exchange and the Arca of the New York Stock Exchange to: list and trade shares of the Global X Bitcoin Trust and New York Digital Investment Group’s Bitcoin exchange-traded fund or ETF, respectively. The SEC said NYSE Arca and Cboe BZX had failed to comply with charges under the Exchange Act and the SEC’s rules of practice stating that the ETF “is designed to prevent fraudulent and manipulative acts and practices” and “investors and the to protect the public interest. †

The New York Digital Investment Group, or NYDIG, and Global X filed applications with the SEC for spot Bitcoin (BTC) ETF in June and August 2021, respectively, but the committee has designated extended periods to approve or disapprove of the proposed rule change and opened the requests for public comment several times before making a decision on Thursday. The rejections followed similar decisions for spot BTC ETF applications from WisdomTree and VanEck.

While the US regulator has yet to approve any Bitcoin ETF applications from financial institutions, investment vehicles linked to Bitcoin futures have had more success. Many companies filed applications for BTC “strategy” ETFs after SEC chairman Gary Gensler said in August 2021 he would be more open to accepting exchange-traded funds based on crypto futures rather than direct exposure. . The committee has since approved ETFs linked to BTC futures from Valkyrie, ProShares and VanEck.

Related: SEC Chairman Points to No Place Bitcoin ETFs Yet, Cites ‘Careful Consideration’ for Future

As crypto ETF filings from other companies are still in the pipeline, at least one company is taking more initiative to apparently put pressure on regulators. After the SEC delayed its decision on whether to approve the Bitcoin Trust’s conversion into a Grayscale spot BTC ETF, the asset manager launched a campaign calling on US investors to file comments with the SEC. The regulator is expected to make a decision on the ETF on July 6.

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