In yet another set of ETF rejections, the US Securities and Exchange Commission vetoed two proposals to offer physically-backed Bitcoin exchange-traded funds. As of yet, the regulatory agency is yet to approve any bitcoin spot ETF application.

According to an <a href="https://www.sec.gov/rules/sro/nysearca/2021/34-93859.pdf" target="_blank" rel="nofollow noopener">official notice</a>, the SEC rejected the application of bitcoin trusts by Valkyrie and Kryptoin for failing to meet its standard.

"(These proposals) do not meet the standard of being designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest,” the SEC said. However, "its disapproval of this proposed rule change does not rest on an evaluation of whether <a href="https://www.cryptoknowmics.com/news/bitcoin-shows-bullish-pattern-why-btc-could-surge-for-50k/">bitcoin </a>or blockchain technology more generally, has utility or value as an innovation or an investment," the agency added.
<h2><strong>SEC's Long-Lasting Rejection for Bitcoin ETFs</strong></h2>
The SEC has been rejecting such applications since the first one was filed in 2013 arguing that the Bitcoin market was subjected to manipulation. Just a month earlier, it rejected a VanEck application for a spot Bitcoin ETF following a similar ruling against Grayscale Bitcoin Trust.

In contrast, it has a preference for a bitcoin future <a href="https://www.cryptoknowmics.com/news/a-valkyrie-funds-etf-focusing-on-companies-with-exposure-to-bitcoin-has-been-launched/">ETFs</a> over an ETF. In October, the agency approved two bitcoin futures-based funds, the ProShares Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF, which made their Wall Street debuts the same month. The first BTC futures ETF, ProShares Bitcoin Strategy, attracted about $1 billion in investor inflows shortly after its launch.

A Bitcoin ETF provides exposure to the flagship cryptocurrency without directly owning the asset. This efficiently allows investors to diversify their portfolio without the hassles and risks of buying and holding the digital asset itself.

The SEC has several ETF applications to be reviewed with more announcements to come in the near future. For instance, it’s going to decide the fate of Anthony Scaramucci’s Skybridge Bitcoin ETF before January 22 and Fidelity’s Wise Origin Bitcoin Trust before January 27.

The US SEC Rejects Two Spot Bitcoin ETFs Proposals

The US Securities and Exchange Commission (SEC) vetoed against two proposals to offer physically-backed Bitcoin exchange-traded funds.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

The US SEC Rejects Two Spot Bitcoin ETFs Proposals

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