Disapproval was announced by the United States Securities and Exchange Commission which is commonly known as the SEC on the application of the ARK 21Shares Bitcoin exchange-traded fund (ETF). In a filing that took place this Thursday, the SEC denied a proposal that portrayed a change in rule from Cboe, trade shares of the ARK 21Shares Bitcoin ETF, and the list of BXE Exchange.
Reason For The Rejection By The SEC Regarding The Application
In the views of the SEC, the recommended change in rules was originally announced and published in the Federal Register for their comments in August last year. This publication of the proposed changes will not only prevent fraudulent actions and manipulative practices but also will not give protection to the public interest and investors.
As per SEC, several requirements were not met by the Cboe BZX Exchange regarding the listing of their financial product under their particular rule of practice along with the laws present in the Exchange Act. After considering all the restrictions, the exchanges which want to include a BTC ETF must have an agreement of comprehensive surveillance-sharing with a market condition that is regulated and is of proper size having relation to the reference or underlying BTC assets.
21Shares is a user of the exchange-traded product and the company is based in Europe. They have filled out the application for the spot bitcoin ETF with Ark Investment Management and submitted it in June last year. Their sole motive was to list the exchange of Cboe BZX under the ticker of ARKB.
The SEC will take a maximum of 180 days to get to their final decision or will open the offering to the public for their honest comment. At the starting month of this year, the regulatory body sat and provided for an extension to its deliberation window to April. As per record, SEC has never accepted the application of any spot crypto ETF to list their shares in the U.S.
