SEC Snubs Fidelity’s Bitcoin ETF Application
The U.S. Securities and Exchange Commission (SEC) has once again put off the reality of a first Bitcoin Spot exchange-traded fund, or ETF, in the country. This time the regulator rejected the application from asset manager Fidelity.
An ETF, is a publicly-traded investment vehicle that tracks the value of an underlying asset, Bitcoin in this case.
In a Thursday statement the regulator notes that the application for Fidelity’s Cboe BZX Exchange did not include enough measures on how it would prevent fraudulent activities, exactly the same explanation given when it rejected previous applicants. The SEC said:
“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’.”
So far, the SEC has rejected six applications since November 2021, while there are still nine awaiting a final decision, according to Bloomberg. The latest rejection was last week when an application for a Bitcoin ETF from First Trust Advisors and SkyBridge got snubbed by the regulator.
The U.S. does not have a Bitcoin ETF yet due to the SEC’s reluctance over its concerns of potential price manipulation in the cryptocurrency market.
In November, U.S. Representatives Tom Emmer and Darren Soto called on the SEC to allow Bitcoin spot exchange-traded funds (ETFs) as they sent a bipartisan letter to the Chairman Gary Gensler.
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Source: igaming
