The Securities and Exchange Commission has rejected another application for a Bitcoin spot ETF, this time from asset manager Fidelity.
Another application rejected
The US regulator said in a note that the application did not provide sufficient evidence about how it would prevent fraud. It gave the exact same reason for the earlier rejections.
“The Commission concludes that BZX has failed to comply with its burdens under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal complies with the requirements of Exchange Act Section 6(b)(5 ). In particular, the requirement that the rules of a national stock exchange are “designed to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest.” According to the SEC.
An exchange-traded fund, or ETF, is a publicly traded investment vehicle that tracks the value of an underlying asset. A Bitcoin ETF does not yet exist in the US because the SEC is very reluctant. The regulatory body says it is concerned about possible price manipulation in the cryptocurrency market.
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The SEC Continues to Disapprove of Bitcoin ETFs
Last week, the SEC rejected an application for a Bitcoin ETF from First Trust Advisors and SkyBridge. The SEC has rejected six applications since November. According to Bloomberg data, nine are still pending a decision.
Bitcoin futures ETFs already exist in the US. The stocks in such ETFs do not represent Bitcoin as an underlying asset. Rather, they are contracts that bet on the future price of Bitcoin. These contracts are known as derivatives and are regulated by the CFTC.
Boston-based investment firm Fidelity manages more than $4 trillion in assets and has already launched a Bitcoin ETF in Canada. The company filed with the SEC last March for its Bitcoin ETF.