US SEC rejects Valkyrie and Kryptoin Bitcoin is trusted by Reuters

Hanna Lange and Katanga Johnson

(Reuters)-The US Securities and Exchange Commission rejects two proposals to offer Bitcoin exchange-traded funds, and after approving a futures-backed Bitcoin fund in October, the agency will turn its efforts into a green light. It hit the market participants who wanted it.

In a notice on Wednesday, market regulators said the proposal to list and trade shares in the Valkyrie Fund and the Cryptoin Bitcoin ETF Trust was not approved because it did not meet the criteria.

“(These proposals) do not meet the standards designed to prevent fraudulent and manipulative acts and practices and protect investors and the public interest,” the SEC said.

In October, the SEC approved two Bitcoin futures-based funds, the ProShares Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF, and made its debut on Wall Street the same month.

However, regulators have not yet accepted applications for Spot Bitcoin ETFs. Last month, the SEC rejected VanEck’s application to create a Spot Bitcoin fund and postponed a decision on a similar proposal from Grayscale Bitcoin Trust on December 17.

ETFs are investment tools that track stock baskets and are popular because of their low fees. Bitcoin ETFs, which provide exposure to digital currencies, aim to save you the trouble of buying cryptocurrencies from exchanges and managing your private keys.

Industry groups and stock exchanges have long sought approval from the SEC for these products.

But democratic SEC chairman Gary Gensler and investor supporters are worried about what they see as a lack of regulatory oversight and oversight that increases the likelihood of fraud and manipulation, they say. rice field.