Another spot Bitcoin ETF proposal, this time from investment giant Fidelity, was rejected by the US Securities and Exchange Commission.
The SEC has reported that it has not approved the ETF proposal, according to a newly released filing. The development in question marks the latest in a series of rejections by the SEC, which has not approved a spot ETF that tracks Bitcoin. The institution seems determined to opt for ETFs that track the Bitcoin futures market over spot Bitcoin ETFs.
As with other rejections, the SEC has expressed concerns about fraud, manipulation and investor protection. Such concerns have been voiced by the SEC for years.
As we reported last week, the SEC rejected a Bitcoin-focused spot ETF from First Trust and Skybridge Capital on the same grounds.
The SEC has had no trouble approving Bitcoin futures ETFs. Although the process took a long time, ProShares Bitcoin Strategy ETF (BITO) and Valkyrie Bitcoin Strategy ETF (BTF) have been trading since October. But the spot Bitcoin ETF seems difficult to get approval.
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) in 2022.
Finally, a decision on another ETF proposal from Stone Ridge and NYDIG is expected by mid-March. But, as can be seen from the humorous post below, there doesn’t seem to be much hope for this offer either.
Annnnnd there it is. @Fidelity‘s spot #Bitcoin ETF application was denied by the SEC just now (as expected). Stone Ridge/NYDIG are up next on March 16th. https://t.co/i6yM9MdDvp pic.twitter.com/zG00Ko7org
— James Seyffart (@JSeyff) January 27, 2022