SEC Denies Fidelity’s Bitcoin Spot ETF
The SEC denied Fidelity’s Bitcoin Spot ETF proposal today.
The Commission cited concerns over fraud, market manipulation, and the lack of investor protection.
Other institutions are taking a different approach to Bitcoin ETFs, as the SEC has shown no signs of approving a spot fund anytime soon.
Share this article
The Securities and Exchange Commission has rejected Fidelity’s Wise Origin Bitcoin Trust, a Bitcoin-based spot ETF. The SEC approved various Bitcoin futures ETFs last year, but the spot ETF has remained elusive.
Bitcoin Spot ETF Denied—Again
The SEC has continued its long-standing practice of denying approval for Bitcoin spot ETFs.
The regulatory body has not approved the necessary rule change that would allow Fidelity to list its Wise Origin Bitcoin Trust. The investment giant’s ETF had support from the Chicago Board Options Exchange’s BZX Exchange, and it filed with the SEC on May 10 last year.
The SEC extended the deadline by which would approve, deny, or further delay on the Fidelity decision in July and again in November.
It was denied today, the Commission wrote, because BZX failed to meet its burden of demonstrating that fraud and manipulation could be sufficiently prevented, as per the Exchange Act and the Commission’s Rules of Practice. Moreover, the SEC remained unconvinced that the Exchange had not taken sufficient measures that might protect investors and “the public interest.” Similar concerns were cited by the Commission in its past denials.
While the SEC did approve several Bitcoin Futures ETFs last year, which do not actually track underlying price of Bitcoin, to which there was great exuberance, as evidenced by one nearing trading records upon its debut. However, the SEC denied multiple spot ETFs last year, and postponed many others.
There are still Bitcoin spot ETF applications pending, with two slated to be decided upon next month. However, it seems more likely that another kind of cryptocurrency-related ETF might have approval success, and that is what Valkyrie seems to have banked on, applying yesterday to the SEC for an ETF focused on companies related to Bitcoin mining.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and several other cryptocurrencies.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
SEC Further Delays Bitcoin Spot ETF Decision
The Securities and Exchange Commission has delayed its decisions on two different Bitcoin spot exchange-traded funds. Patience: A Virtue? The SEC has extended the period by which it can review…
Valkyrie Applies for Bitcoin Mining-Focused ETF
Crypto asset manager Valkyrie Investments has applied with the SEC to list a Bitcoin mining-focused exchange-traded fund on the Nasdaq. Valkyrie ETF to Invest in Bitcoin Mining Stocks Valkyrie has…
Is Time on our Side? The Case for Bitcoin’s Lengthening Cycles
One of the many unique features of BTC is its halving process, which is often accompanied by a bullish movement and preceded by bearish consolidation. Bitcoin’s halving events have been…
Bitcoin Futures ETF Set to Hit Highest Launch Day Trading Volume
The ProShares Bitcoin futures ETF debuted on the New York Stock Exchange this morning. Initial trading volumes show that it’s on target to take the top spot for the highest…