SEC turns down ARK 21Shares area Bitcoin ETF application

The United States Securities and Exchange Commission, or SEC, has actually formally disapproved the application for the ARK 21Shares Bitcoin exchange-traded fund (ETF).


In a Thursday filing, the SEC rejected a proposed guideline modification from the Chicago Board Options Exchange, or Cboe, BZX Exchange to list and trade shares of the ARK 21Shares Bitcoin (BTC) ETF. The SEC stated the proposed guideline modification, initially released for remark in the Federal Register in August 2021, would not be “‘designed to prevent fraudulent and manipulative acts and practices” nor “protect investors and the public interest.”

The SEC stated that the Cboe BZX Exchange had actually not fulfilled the requirements of noting a monetary item under its guidelines of practice along with those of the Exchange Act. Under these limitations, exchanges looking for to note a Bitcoin ETF requirement to have “a comprehensive surveillance-sharing agreement with a regulated market of significant size related to the underlying or reference Bitcoin assets.”

21Shares, a Europe-based exchange-traded item company, sent the area Bitcoin ETF application with Ark Investment Management in June 2021 for noting on the Cboe BZX Exchange under the ticker ARKB. The SEC had 180 days to reach a choice or open the offering to public remark. In January 2022, the regulative body extended its consideration window to April.

To date, the SEC has actually not authorized any area crypto ETF application for noting shares in the United States however has actually okayed to financial investment cars connected to BTC futures, consisting of offerings from ProShares, VanEck and Valkyrie. As of October 2021, 21Shares was among the biggest institutional crypto item providers, with more than $2 billion in possessions under management reported.

Related: SEC might authorize area Bitcoin ETFs as early as 2023

Grayscale, among the next possession supervisors most likely to hear a choice from the regulative body on its area Bitcoin ETF, released a project in February focused on motivating U.S. financiers to send remarks to the SEC. The regulator is anticipated to reach a choice on Grayscale transforming its Bitcoin Trust into an area BTC ETF by July 6.