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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