SEC Rejects Kryptoin Spot Bitcoin ETF Proposal

The decision comes about five weeks after the agency rejected VanEck’s application for a spot bitcoin ETF.

Dec 22, 2021 at 10:57 p.m. UTC
Updated Dec 23, 2021 at 3:14 p.m. UTC

The U.S. Securities and Exchange Commission (SEC) rejected investment firm Kryptoin’s proposal for a spot bitcoin exchange-traded fund (ETF) in a letter on Wednesday.

  • The decision comes roughly five weeks after the agency had rejected VanEck’s application for a spot bitcoin ETF.
  • It was also not unexpected because SEC Chair Gary Gensler has stated his preference for a bitcoin futures ETF over an ETF that holds bitcoin itself.
  • Two bitcoin futures ETFs, the ProShares Bitcoin Strategy ETF (BITO) and the Valkyrie Bitcoin Strategy ETF (BTF), began trading in October.
  • The SEC began officially evaluating the Kryptoin application in April.
  • Bitcoin’s price was down slightly in Wednesday afternoon trading.

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James Rubin is CoinDesk's U.S. news editor based on the West Coast.