SEC Rejects Ark 21Shares Bitcoin Spot ETF Filing - BitcoinEthereumNews.com
Ark 21Shares bitcoin spot ETF has been rejected by the U.S. Securities and Exchange Commission due to a lack of adequate investor protection. Ark 21Shares is a collaboration between Wall Street titan Cathie Wood‘s Ark Investment Management and investment firm 21Shares, which jointly दायर an application on behalf of Cboe BZX Exchange to launch its product last July. “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,’” the SEC said in a decision statement. Ruling on the application was delayed multiple times, the most recent postponement taking place in Jan. 2022. Why no spot ETF? Spot ETFs track the price of bitcoin directly without requiring clients to own the asset now. The ETFs are governed by the 1933 Securities Act process, requiring the submission of Form 19B-4 to detail how the underlying market is resistant to abuse. SEC Chair Gary Gensler has previously made known a definite