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America Securities and Exchange Commission (SEC) has again declined to grant regulatory approval. Ark Investment Management and Exchange Traded Securities (ETN) Issuers 21 shares Listing a Spot Bitcoin (BTC) Exchange Traded Fund (ETF).
according to In a document published Jan. 26, the SEC said: Cboe BZX Exchange The ETF is about to be listed and said:
“The commission concludes that the BZX has [failed to] Substantiating that its proposals are consistent with the requirements of Section 6(b)(5) of the Securities Exchange Act, the relevant part states that the rules of domestic stock exchanges “constitute fraudulent and manipulative conduct and practices.” “designed to prevent”. This is to protect the interests of investors and the public. “
In considering whether an exchange’s offer to list and trade these shares is designed to prevent fraudulent and manipulative conduct and practices, the SEC He said he used the same analytical framework that he had previously used in assessing whether he was going to trade. Lists listed products (ETPs) that are able to meet their obligations under Section 6(b)(5) of the Securities Exchange Act.
Exchanges listing Bitcoin-based ETPs must demonstrate that they have “comprehensive oversight sharing agreements with regulated markets of substantial size related to underlying Bitcoin assets or reference Bitcoin assets.” By doing so, the Commission said it would be able to fulfill its obligations under the Act.
Also, while the oversight sharing agreement is not the only way for a commodity trust ETP listing exchange to meet its obligations, the document states:
“If, as here, a listed exchange fails to demonstrate that other measures to prevent fraudulent and We must enter into a surveillance sharing agreement with you to deter fraudulent and manipulative activity.”
The SEC goes on to argue that BZX’s proposal is consistent with Section 6(b)(5) of the Securities Exchange Act. Here’s why:
- The exchange has a comprehensive monitoring sharing agreement with a sizable regulated market.
- Fraudulent and manipulative enough to justify omitting the fraud and manipulation detection and deterrence provided by comprehensive surveillance sharing agreements with the sizable regulated markets associated with SpotBitcoin. There are other means to prevent conduct and practices.
However, the Commission argued that BZX did not provide sufficient other means to prevent fraudulent and manipulative conduct and practices to cause the SEC to change its mind.
It also concluded that BZX has not established that it has comprehensive oversight sharing agreements with any sizeable regulated market related to Spot Bitcoin, adding:
“BZX reiterates various allegations made in previous Bitcoin-based ETP proposals, including previous ARK filings, which the Commission previously addressed and rejected – and More importantly, BZX has many reasons for the Commission to reject those claims.”
SEC has already application Investment product provider 21Shares and Ark Invest, a fund led by prominent investor Kathy Wood, filed in April 2022. submitted Another application in May. The SEC has pushed deadlines for approval or disapproval of his ETF for ARK 21Shares several times over the last year.
Also last year, 21Shares said it was partnering with an asset manager. Byte Tree Asset Management 21Shares ByteTree BOLD ETP (BOLD), which is a combination of Bitcoin and Gold, was launched. SIX Swiss Exchange.
Meanwhile, as reported, the crypto-focused ETF market saw an upward push in 2023 amid a surge in cryptocurrency prices. Of the 2,000 funds, the top 14 ETFs, excluding leveraged products, are all tied to digital assets, noting that cryptocurrency funds dominate the $6.8 trillion ETF market.
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