- The regulatory authority has yet to approve a bitcoin spot ETF application. The Kryptoin ETF was a bitcoin-based exchange-traded fund.
- The Valkyrie Bitcoin Fund and the Kryptoin Bitcoin ETF Trust allegedly failed to meet SEC requirements.
The SEC declined both the Valkyrie and Kryptoin spot ETF applications, citing a lack of evidence. The application for a bitcoin spot ETF has not yet been authorized by the regulatory body.
An official notice from the Securities and Exchange Commission of the United States states that Valkyrie and Kryptoin’s application to establish bitcoin trusts has been refused.
This year, the Securities and Exchange Commission (SEC) rejected yet another group of exchange-traded funds (ETFs). Specifically, the bids to list and trade shares of the Valkyrie Bitcoin Fund and the Kryptoin Bitcoin ETF Trust failed to meet the conditions set forth by the markets regulator, according to the markets regulator.
“Those proposals do not fulfill the criterion of being intended to prevent fraudulent and manipulative conduct and practices, as well as to protect investors and the public interest,” the SEC concluded.
ProShares launched the first-ever futures-based bitcoin exchange-traded fund (ETF) in the United States in late October. It became the first exchange-traded fund (ETF) to exceed $1 billion in assets under management in just two days of trading.
This month, Valkyrie (BTF) and VanEck (VEN), two more bitcoin-linked futures-based funds, were approved by the Securities and Exchange Commission (SEC)
The Valkyrie Bitcoin Fund’s approval has been postponed numerous times this year, and market observers were hopeful for a favourable decision this time. The Kryptoin ETF was a bitcoin-based exchange-traded fund that traded on a spot market. Only a few weeks ago, the VanEck bitcoin spot ETF was rejected by the Securities and Exchange Commission.
About Bitcoin ETF
ETFs are investment vehicles that track stock baskets, and their popularity has grown as a result of their lower transaction costs and lower fees. A Bitcoin ETF, which provides exposure to the digital currency, aims to alleviate the difficulty of purchasing Bitcoin through an exchange and maintaining private keys by eliminating the need to do so.