SEC Rejects Another Application Of Fidelity For A BTC ETF

The SEC rejects another application of Fidelity for a Bitcoin ETF, remaining harsh on its stance to say no to ETFs as we can see further in our latest Bitcoin news.

The SEC rejects another application for a Bitcoin ETF and the regulator said in a note for Fidelity’s CBOE BZX exchange that it didn’t provide sufficient evidence on how it will prevent fraud. The SEC gave the exact same reason for other rejections:

“The Commission concludes that BZX 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.”

An exchange-traded fund or ETF is a publicly-traded investment vehicle that tracks the value of the underlying assets. The Bitcoin ETF doesn’t exist in the US yet because the SEC hasn’t approved one. The regulator says it Is very concerned over potential price manipulation on the crypto market. The SEC last week rejected an application for a BTC ETF by Frist Trust Advisors and SKyBridge. The SEC rejected six applications and there are nine more that await approval. Futures Bitcoin ETFs exist in the US and the shares in such do not represent Bitcoin as an underlying asset but rather a contract that bets on the future price of BTC. The contracts are known as derivative products and are regulated by the CFTC.

The Boston-based investment company Fidelity manages more than $4 million in assets and launched a bitcoin ETF in Canada with the company applying for an SEC for the Bitcoin ETD the last march.

As recently reported, The financial services company Fidelity’s Canadian branch, aims to make a few changes to the Fidelity all-in-one growth ETF and Fidelity All-in-One Balanced ETF including adding a smaller allocation to the Bitcoin ETF of the company. After a few unsuccessful attempts to launch a spot BTC ETF in the States, Fidelity’s Canada branch released such a product late last year. The company announced that it will provide a wider adoption for the fund by including it in the larger ETFs.