After the US Securities and Exchange Commission (SEC) approved the Bitcoin futures ETF in 2021, there has been an increase in the number of both spot Bitcoin ETF applications and Bitcoin futures ETF applications.
The SEC has approved two Bitcoin futures ETFs, the ProShares Bitcoin Strategy ETF (BITO) and the Valkyrie Bitcoin Strategy ETF (BTF), which began trading in October.
However, the SEC, which did not favor the spot Bitcoin ETF, did not change its mind on this issue and rejected investment firm Kryptoin’s spot Bitcoin ETF application.
Kryptoin also applied for an ETF in 2019 and was rejected again. The SEC rejected VanEck’s spot Bitcoin ETF about a month ago.
Kryptoin’s rejection of its ETF application was an expected move from the SEC, as SEC Chairman Gary Gensler has previously stated that he prefers a Bitcoin futures ETF over a spot Bitcoin ETF.
The SEC rejected WisdomTree’s spot Bitcoin ETF in early December, citing it as risky. The SEC said in a statement that refusal was necessary to protect investors from “manipulative” actions.
Grayscale, one of the major firms seeking a spot Bitcoin ETF, recently sent a letter to the SEC questioning its decision to reject Bitcoin ETFs.
In this letter, Grayscale said that he found the SEC’s rejections arbitrary and unfair, arguing that the SEC’s refusal to approve a spot Bitcoin ETF violated federal law.