Cathie Wood’s ARK Invest and European crypto investment firm 21Shares appear unfazed by the US cryptocurrency regulatory environment and have once again filed for approval of a Bitcoin (BTC)-based financial product.
On April 25, the two companies petitioned the US Securities and Exchange Commission (SEC) to approve the creation of a spot Bitcoin exchange-traded fund (ETF), despite being rejected twice before. .
The two companies first applied for the creation of their spot Bitcoin ETF on June 28, 2021, which was subsequently rejected by the SEC in April 2022. The regulator said the product did not meet the listing requirements for a product. under its rules of practice, as well as those of the Exchange Act.
Both filed another request for the second time in May 2022, a request that the SEC rejected again on January 26 of this year.
An ETF allows investors to gain exposure to a particular asset without actually owning the underlying financial product. A spot Bitcoin ETF allows investors to gain indirect exposure to the cryptocurrency with stocks that follow the price of BTC in real time without actually owning Bitcoin.
Although the SEC has approved several Bitcoin futures ETFs – which expose buyers to the potential future value of BTC – it has so far rejected all applications for spot Bitcoin ETFs, citing difficulties to “protect investors and the public interest.” ” against fraud and manipulation.
According to Bloomberg ETF analysts, it seems likely that a spot Bitcoin ETF could become a reality in the US by the middle of this year.
New note out on why we think spot bitcoin ETFs will get approved in early Summer 2023. The SEC is proposing to expand the definition of “exchange” which would bring crypto platforms under SEC reg. After that (which could take a year) look for ETFs to get green light via @JSeyff pic.twitter.com/TtFgFXrJ8h
—Eric Balchunas (@EricBalchunas) March 24, 2022
Cryptocurrency conglomerate Digital Currency Group (DCG) is currently seeking to convert its flagship Grayscale Bitcoin Investment Trust (GBTC) into a spot Bitcoin ETF and has sued the SEC for rejecting its proposal.
Grayscale’s legal director, Craig Salm, said in a tweet on January 12: “Case is moving quickly. Although timing is uncertain, oral arguments may be as soon as Q2 .”
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