The SEC rejected Valkyrie and Kryptoin’s applications for publicly traded spot bitcoin funds.
Two months ago the SEC did allow Valkyrie to launch a bitcoin futures fund on Nasdaq.
The SEC (United States Securities and Exchange Commission) once again rejected applications for spot or spot bitcoin exchange-traded funds (ETFs) countless times. This time it was the case with Valkyrie and Kryptoin, who were bounced on December 22.
Under the same argument that it has used in the past, the SEC determined that the funds of Valkyrie Y Kryptoin “They did not prove to be consistent (…) in preventing fraudulent and manipulative acts and practices.” Thus, it affirms that the rejection decision responds to its intention to “protect investors and the public interest.”
This situation has become repeated news. The SEC has been frowning on bitcoin spot ETF proposals for 8 years now. It even continues to do so this year after allowing three bitcoin futures funds (also called “paper”) to go public for the first time that are based on contracts on speculative potential prices, rather than the present value of the stock. cryptocurrency as the spot look for.
2021 ends with no US bitcoin spot ETFs
James Seyffart, Bloomberg’s ETF Research Analyst, express that he was “a little surprised” by the SEC’s decision, as he does not understand its motives. Congressmen Tom Emmer and Darren Soto stated that It doesn’t make sense that they allow future ETFs and spot ones not, as they carry the same level of risk. Futures can even be interpreted as riskier, considering that we do not know what will happen next.
Comically, James Seyffart posted on Twitter an image depicting the latest bitcoin funds that the SEC ‘murdered’, with Kryptoin and Valkyrie being the last so far. The drawing also shows the next ones on the list, which are First Trust and Skybridge, since they will have their verdict before January 22.
Valkyrie and Kryptoin rejection means 2021 will end without any spot bitcoin ETFs, since they were the last requests of the year. Although, it is worth clarifying that, as CriptoNoticias reported, Valkyrie did get two months ago that the SEC allowed its bitcoin exchange-traded fund based on speculative future prices.