CBOE is applying for the ARK 21Shares Spot Bitcoin ETF for the third time
The Chicago Board Options Exchange has filed for the ARK 21Shares Bitcoin ETF with the SEC for the third time. The agency has rejected the application twice previously.
The Chicago Board Options Exchange (CBOE) has submitted another proposal for its ARK21Share Bitcoin ETF to the United States Securities and Exchange Commission (SEC). The ETF is a spot one – none of its kind has yet to be approved by the SEC – and is related to the one offered by Ark Invest and investment company 21.
SEC remains hesitant on Spot Bitcoin ETFs
The SEC has been extremely hesitant to approve spot ETFs, and it may take some time for the market to see one approved. As the US government becomes increasingly focused on regulating the crypto market, it seems that there will be a lot of regulation before such investment products come to market.
As for CBOE, it has applied for approval for this ETF twice in the past, and the SEC rejected it on investor protection grounds. Although this is the current environment in which entities operate, it does not seem to stop them from searching.
Ark 21Shares Spot Bitcoin ETF rejected twice before
The SEC first rejected the ARK 21Shares spot bitcoin ETF in April 2022, citing concerns about the ability to prevent fraudulent and manipulative practices. The ETF, with the ticker ARKA, will not see Ark Investment making investment decisions or advice, and the company only offers marketing support.
In the second rejection, which occurred in January 2023, the SEC stated that the ETF did not “demonstrate that the proposal complies with the requirements.” With the second rejection, it is clear that the SEC is not ready to approve a spot ETF unless there are major changes in the crypto market.
The SEC has thrown out several Spot Bitcoin ETF applications
The SEC’s past rejections are evidence of the agency’s hardline stance on the crypto market. Grayscale and VanEck have also seen spot ETFs rejected, with the former even pursuing a lawsuit after a rejection.
The SEC rejected WisdomTree’s spot Bitcoin ETF application on the same grounds for investor protection. Similarly, it also rejected an application from New York Digital Investment Group and fund manager Global X.
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