The U.S. SEC Rejects NYDIG And Global X Spot Bitcoin ETF Proposals

The United States Securities and Exchange Commission (SEC) has rejected two spot bitcoin exchange-traded fund proposals, continuing a trend of rejections from the US securities market regulator. 

A spot Bitcoin exchange-traded fund is something that the cryptocurrency community has been looking forward to for a long time. Unfortunately, the US regulator doesn’t see eye to eye with the community.

The SEC rejected two proposals to list and trade shares of spot Bitcoin exchange-traded funds from NYDIG and Global X.

The SEC wrote in the NYDIG order:

“This order disapproves the proposed rule change. The Commission concludes that NYSE Arca has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), and in particular, the requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest.'”

The US regulator had previously delayed its ruling on the NYDIG Bitcoin ETF proposal for two months.

With the latest rejections the SEC is sending clear signals that it has no plans of listing a physical Bitcoin ETF, despite approving similar products for futures-backed exchange-traded funds in October last year.