The Securities and Exchange Commission (SEC) of the United States has once again rejected a proposal for a physical Bitcoin exchange-traded fund (ETF) filed by ARK 21Shares, which is led by investment legend Cathie Wood. According to a filing last Thursday, the SEC rejected an application for an ARK 21Shares Bitcoin ETF, citing a lack of investor protections.
The ARK Investment Management LLC, led by Cathie Wood, and 21Shares, a Europe-based exchange-traded product issuer, collaborated and applied on behalf of the Cboe BZX Exchange for the ARK 21Shares Bitcoin exchange-traded fund (ETF) to change the rules and allow for the listing of the Ark 21Shares offering.
The SEC’s rejection of the Chicago Board Options Exchange’s (Cboe BZX Exchange) proposal to list and trade shares of the ARK 21Shares Bitcoin ETF.
The proposed rule change, according to the SEC, rule change would neither “prevent fraudulent and manipulative acts and practices” nor “protect investors and the public interest.”
The SEC also stated that the Cboe BZX Exchange had failed to meet the standards for listing a financial product under its rules of practise and the Exchange Act. Exchanges that want to list a Bitcoin ETF must have “a comprehensive surveillance-sharing agreement with a regulated market of significant size related to the underlying or reference Bitcoin assets,” according to the regulator.
Ark Investment Management and 21Shares filed an application for the physical Bitcoin ETF to be listed on the Cboe BZX Exchange under the ticker ARKB in June 2021. The SEC extended the review period for such applications to April 2022 in January 2022.
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