SEC Rejects Two More Bitcoin Exchange-traded Funds (ETFs), Here’s Why

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The U.S. Securities and Exchange Commission (SEC) has rejected two more physically-backed Bitcoin exchange-traded funds (ETFs) proposed by Valkyrie and Kryptoin, respectively.

The commission had provided the same arguments it used in the past when it rejected other applications.

According to the Commission, NYSE Arca and Cboe BZX Exchange, which filed respective proposed rule changes to list and trade Valkyrie and Kryptoin products, “failed to demonstrate that their proposals are consistent with the requirements of Exchange Act Section 6(b)(5).”

The SEC stated that this relates specifically to the requirement that a national securities exchange must be “designed to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest.”

What is An ETF

An ETF is a Platform that allows investors to buy shares that track the price of an underlying asset.

Bitcoin ETF, as the name implies seeks to give exposure to Bitcoin, saving the hassle of purchasing the cryptocurrency from an exchange and managing the private keys.

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