There have been a number of denials by the SEC of applications for spot bitcoin exchange traded funds.
- The SEC had extended its review period to receive and review comments on NYDIG’s spot exchange traded fund product, but has now concluded it didn’t meet enough criteria due to concerns about fraud, manipulation and valuation methodology.
- The rejections come as no surprise as SEC Chair Gary Gensler has indicated multiple times that he prefers to see a futures exchange traded fund over one that holds a direct stake in the virtual currency.
- The SEC has rejected applications from Fidelity, First Trust, and other companies.
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