SEC Denies 2 More Spot Bitcoin ETFs

The Securities and Exchange Commission shot down two more attempts by ETF issuers to establish the first spot bitcoin exchange-traded product in the U.S. on Wednesday, adding to the ongoing list of denials.

Regulators issued denials for the Kryptoin Bitcoin ETF Trust, which was due for a final decision on Christmas Eve, and the Valkyrie Bitcoin Fund, which was due for a decision on Jan. 7.

[Stay in the know on bitcoin filings with our Bitcoin ETF Tracker.]

Valkyrie launched the second bitcoin futures-based ETF in the U.S. with its Valkyrie Bitcoin Strategy ETF (BTF), and has the Valkyrie Balance Sheet Opportunities ETF (VBB), which tracks companies that have bitcoin and other cryptocurrencies on their balance sheets.

The SEC said both funds’ arguments that bitcoin prices are inherently resistant to price manipulation due to the asset being traded on multiple exchanges at once were insufficient, and reiterated its stance that a surveillance-sharing agreement be put in place before approval of a fund.

The SEC has used that line of reasoning to deny both VanEck’s and WisdomTree’s attempts to launch a spot product earlier this year.

The next two firms in line for a decision on their fund applications are the Wise Origin Bitcoin Trust and the First Trust SkyBridge Bitcoin ETF Trust. The SEC is required to issue decisions on those funds by Jan. 22.

Contact Dan Mika at [email protected], and follow him on Twitter