The SEC had extended its review period to receive and review comments on NYDIG’s spot ETF product, and has now concluded it didn’t meet sufficient criteria, citing concerns around fraud, manipulation and valuation methodology.
The rejections come as no surprise as SEC Chair Gary Gensler has indicated multiple times that he prefers to see a bitcoin futures ETF over one that holds bitcoin directly.
UPDATE (March 11, 15:14 UTC): Adds context in second bullet point.
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