The US SEC (Securities and Exchange Commission) has formally discarded the 21Shares and ARK’s BTC ETF (exchange-traded fund) application. In a filing on Thursday, the agency eliminated a suggested rule modification from the Cboe (Chicago Board Options Exchange) BZX Exchange for listing and trading of shares of the BTC (Bitcoin) ETF of 21Shares and ARK.

The US-based Securities Agency stated that the suggested rule modification, initially published under the Federal Register in August of the previous year, would not be generated to restrict manipulative and fraudulent practices and operations nor shield the public and investors’ interest. According to the SEC, no requirement had been met by Cboe BZX Exchange to list a financial good in line with the rules as well as the Exchange Act.

According to these limitations, exchanges pursuing the listing of a BTC ETF require to have a thorough surveillance-sharing contract with a massive-sized regulated market dealing with Bitcoin assets. In 2021’s June, 21Shares – known as a Europe-based issuer of exchange-traded products – and Ark Investment Management applied for the spot BTC ETF to be listed on BZX Exchange with the ticker symbol ARKB.

A period of 180 days was with the SEC to make a decision otherwise turn toward public comment. This January, the securities regulatory expanded the deliberation window thereof to April to have some additional pondering over the matter. Up till now, the regulatory has not provided approval for any among the applications for spot BTC ETF to list shares across the United States however has given a go-ahead signal for investment institutions dealing with Bitcoin Futures, taking account of the offerings made on the behalf of Valkyrie, VanEck, and ProShares.

Till October of the recent year, 21Shares was considered to be among the biggest issuers of organizational crypto products, with up to $2B worth in the AUM (assets under management), according to the reports. Grayscale, termed as among those asset managers that are to be treated next on the behalf of the Securities Agency over the application thereof for spot Bitcoin ETF, initiated a movement this February to focus on persuading the investors from across the United States to provide their remarks to the US SEC.

As per the anticipation, the 6th of July would be the date when the regulator would present its decision on whether to permit Grayscale to convert the BTC Trust thereof into a spot Bitcoin ETF.

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