The ARK 21Shares AG’s listing of Bitcoin ETF has been denied by the Commission of Securities and Exchange (SEC) for the nd time.
It was suggested that the New York Stock Exchange aka NYSE, list the ETF. The SEC stated in a filing that the proposals did not meet the requirements of the federal securities law known as the Exchange Act.
The initial ETF filing was made in March, and the Commission considered it in August before rejecting it. The SEC stated in the filing stated that its proposed rule change is consistent with the requirements of Exchange Act Section 6(b)(5), in particular the requirement that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices.
ARK 21Shares Face Difficulties Again In ETF
The ETF had also failed to demonstrate that it was “designed to prevent fraudulent and manipulative acts and practices,” according to the filing.
“Respect the Commission’s decision and are disappointed that we are not able to move forward with the listing of the ARK 21Shares Bitcoin ETF at this time,” ARK 21Shares stated in a joint statement.
Continue to believe in the long-term prospects for a bitcoin ETF and remain focused on helping investors achieve exposure to bitcoin through ETFs,” the companies stated.
For those hoping to list a Bitcoin ETF on the NYSE, the decision made by the SEC is only the latest setback. In the past, several other applications to list Bitcoin ETFs have been turned down.
The SEC has argued that it is concerned about the vulnerability of the Bitcoin market to manipulation and other fraudulent activities too much. Additionally, it has expressed doubts regarding the size of the market to support the listing of a Bitcoin ETF.
Some major players in the cryptocurrency industry continue to hold out hope that the SEC will eventually grant approval to a Bitcoin ETF in spite of the setbacks. The SEC is currently looking at a number of additional applications from businesses that want to list a Bitcoin ETF.
It remains to be seen whether any of these applications will ultimately be accepted by the SEC. For the time being, investors seeking exposure to Bitcoin via an ETF must look elsewhere, such as conventional trading or investing.
