SEC has rejected the Valkyrie and Kryptoin spot ETF applications. The authority is yet to approve a bitcoin spot ETF application
The United States Securities and Exchange Commission has rejected the application of bitcoin trusts by Valkyrie and Kryptoin, according to an official notice. This is yet another set of ETFs that the SEC has rejected this year. The markets regulator said both of the proposals to list and trade shares of Valkyrie Bitcoin Fund and the Kryptoin Bitcoin ETF Trust failed to be approved because they did not meet its standard.
“Those proposals do not meet the standard of being designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest,” the SEC said.
The decision on the Valkyrie Bitcoin Fund underwent a few delays this year, and market enthusiasts were hoping for approval. The Kryptoin ETF was a spot bitcoin ETF. This decision comes just over a month after it rejected the VanEck bitcoin spot ETF. ETFs are investment tools that track baskets of stocks and have become popular due to their lower fees. A Bitcoin ETF, which provides exposure to the digital currency, aims to save the hassle of buying the cryptocurrency from an exchange and managing the private keys.
ProShares debuted the first-ever futures-based bitcoin ETF in the US in late October. It became the fastest ETF to top $1 billion in assets under management, hitting that level after just two days of trading. That same month, the SEC gave the go-ahead to two other bitcoin-linked futures-based funds launched by Valkyrie (BTF) and VanEck (XBTF).
