SEC Denies Constancy’s Bitcoin Spot ETF


Key Takeaways

The SEC denied Constancy’s Bitcoin Spot ETF proposal right this moment.
The Fee cited considerations over fraud, market manipulation, and the shortage of investor safety.
Different establishments are taking a distinct strategy to Bitcoin ETFs, because the SEC has proven no indicators of approving a spot fund anytime quickly.

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The Securities and Change Fee has rejected Constancy’s Sensible Origin Bitcoin Belief, a Bitcoin-based spot ETF. The SEC accepted varied Bitcoin futures ETFs final yr, however the spot ETF has remained elusive. 

Bitcoin Spot ETF Denied—Once more

The SEC has continued its long-standing observe of denying approval for Bitcoin spot ETFs.

The regulatory physique has not accepted the mandatory rule change that may permit Constancy to checklist its Sensible Origin Bitcoin Belief. The funding large’s ETF had help from the Chicago Board Choices Change’s BZX Change, and it filed with the SEC on Might 10 final yr. 

The SEC prolonged the deadline by which might approve, deny, or additional delay on the Constancy resolution in July and once more in November.

It was denied right this moment, the Fee wrote, as a result of BZX failed to satisfy its burden of demonstrating that fraud and manipulation might be sufficiently prevented, as per the Change Act and the Fee’s Guidelines of Apply. Furthermore, the SEC remained unconvinced that the Change had not taken ample measures that may shield traders and “the general public curiosity.” Comparable considerations had been cited by the Fee in its previous denials. 

Whereas the SEC did approve a number of Bitcoin Futures ETFs final yr, which don’t really monitor underlying worth of Bitcoin, to which there was nice exuberance, as evidenced by one nearing buying and selling data upon its debut. Nonetheless, the SEC denied a number of spot ETFs final yr, and postponed many others.

There are nonetheless Bitcoin spot ETF functions pending, with two slated to be determined upon subsequent month. Nonetheless, it appears extra seemingly that one other type of cryptocurrency-related ETF might need approval success, and that’s what Valkyrie appears to have banked on, making use of yesterday to the SEC for an ETF centered on firms associated to Bitcoin mining. 

Disclosure: On the time of writing, the writer of this piece owned BTC, ETH, and a number of other different cryptocurrencies.

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