According to a new report by Bloomberg, the U.S. Securities and Exchange Commission (SEC) rejected a proposal by hedge fund Skybridge Capital and investment advisory firm First Trust to list a spot Bitcoin exchange-traded fund (ETF).
However, this did not come as a surprise to the market. Because; So far, the commission has demonstrated its determination to favor ETFs that track the Bitcoin futures market over spot Bitcoin ETFs.
SEC Still Not Sure About Spot Bitcoin ETF
However, the SEC’s refusal comes just a month after the institution also rejected an offer by investment firm Kryptoin to list a spot bitcoin ETF. The Commission has previously rejected spot Bitcoin ETF offers from WisdomTree and VanEck.
The SEC’s belated decision on First Trust and SkyBridge’s proposal to list a spot Bitcoin ETF may have given some interested parties hope. However, a new rejection decision was expected, based on previous previous decisions by the SEC that it preferred ETFs that track the Bitcoin futures market over the asset itself.
The SEC has had no trouble approving Bitcoin futures ETFs, and the ProShares Bitcoin Strategy ETF (BITO) and Valkyrie Bitcoin Strategy ETF (BTF) have been trading since October. But he still seems unsure about the spot Bitcoin ETF.
Besides, names like Bitwise CIO Matt Hougan are optimistic that the SEC will give the green light to a spot Bitcoin (BTC) exchange-traded fund (ETF) this year.