According to an official notice, the US Securities and Exchange Commission has denied Valkyrie and Kryptoin’s application for bitcoin trusts. Another group of ETFs has been rejected by the SEC this year.
Bitcoin ETFs aren’t well-liked
The Valkyrie Bitcoin Fund’s clearance had been delayed several times this year, and market watchers were hoping for a positive outcome.
It was a spot-based bitcoin ETF called the Kryptoin ETF. This comes just over a month after the VanEck bitcoin spot ETF was rejected.
The SEC has been highly reluctant to approve any cryptocurrency-related investment vehicles, claiming two key concerns as investor protection and market manipulation.
It has, however, taken a step forward and granted a few approvals this year, the most of which are related to futures-based bitcoin ETFs.
The SEC, for example, just approved the Valkyrie Bitcoin Futures ETF, which is now trading on the Nasdaq.
It also gave its approval to the ProShares Bitcoin Strategy ETF, which performed spectacularly well after its initial introduction.
These approvals show that the company is ready to at least evaluate the investment vehicles, and futures-based ETFs have been particularly well received.
SEC reviewing other ETFs
Gary Gensler, the chairman of the SEC, has previously stated the same thing.
The SEC is currently reviewing numerous other ETFs, and it is expected to make more determinations in the coming months. Simultaneously, it is focusing on a broader regulatory agenda.
In 2022, the SEC and others will be paying close attention to cryptocurrencies.
The SEC’s ETF judgments are simply a foretaste of the moves it will take in 2022.
It appears to be a foregone conclusion that the US government will implement full regulation next year.
Several agencies are involved in the conversation, which has been ongoing for the past year.
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