The U.S. Securities and Exchange Commission (SEC) has rejected an application for a spot bitcoin exchange-traded fund (ETF) from Ark 21Shares, according to a filing, citing a lack of investor protections. Ark is run by star investor Cathie Wood.
The application was filed on behalf of the Cboe BZX Exchange to change the rules and allow for the listing of the Ark 21Shares offering.
“The Commission concludes that BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), and in particular, the requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest,'” the SEC wrote in its decision.
The move comes after multiple rejections and delays for spot bitcoin ETFs, with SEC chair Gary Gensler stating a clear preference for bitcoin ETF’s that trade bitcoin futures. In early March, the SEC delayed decisions on applications for spot bitcoin ETFs from both WisdomTree and One River Asset Management. Prior to that, the commission rejected NYDIG and Global X’s spot bitcoin ETF proposals, as well as applications from Fidelity, First Trust, Kryptoin and Van Eck.
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