The SEC’s rejection did not arrive as a surprise since the response it brought to ARK Invest is the same as it has gotten to others interested in releasing a Bitcoin ETF.
This information got revealed by the SEC during a statement in which it highlights that the request filed last year by ARK Invest wouldn’t go that far.
The request wouldn’t proceed because the product and the entities in charge do not meet the requirements the agency requested to fight against fraudulent acts and market manipulation.
Initially, ARK Invest, the investment company of Cathie Wood, established this request in parallel efforts with 21Shares as a supporter, who intended to release the ARK 21Shares Bitcoin ETF to get listed on the Chicago Stock Exchange (CBOE). The custodian of the currencies would be Coinbase, and ARK Invest itself would manage the entire marketing plan connected to the product.
Regarding the rejection of the request, the SEC highlighted that the exchanges could comply with the obligation. They could demonstrate a comprehensive shared surveillance agreement with a vast controlled market linked to the underlying Bitcoin assets. The latter can get described as the regulatory entity that does not approve the product because the digital market goes beyond its supervision.
More Rejections Come and Go
Those specialists in charge of studying the SEC’s decision probably feel that this statement goes beyond previous presumptions. The nature of this statement has been the same reason it has given to other popular entities whose requests to implement a Bitcoin ETF also got repudiated.
Entities like NYDIG, Global X, Fidelity, First, and WisdomTree have followed the same road. The others awaiting a response will keep on the same path since none of the requests have been answered to the doubts that the SEC still has about this product.
Among the people against the SEC’s stance are the directors of VanEck and Grayscale. In the case of Jan Van Eck, he clarified that the organization is withholding the possibility of accepting an ETF focused entirely on Bitcoin, expecting to have more control over the digital assets market.
On the other hand, according to Michael Sonnenshein, the regulator would be behaving illegally by keeping his rejective stance on this type of policy. He even spoke about filing a legal complaint against the entity for discriminatory treatment.
Finally, all these situations highlighted that the race for the first Bitcoin ETF in the US market would continue, so experts argue that perhaps this situation could go to a better place if conditions change. The SEC strengthens its presence in the market.
By: Jenson Nuñez
