For the second time, the U.S. Securities and Exchange Commission (SEC) rejected a joint effort by Ark Investment Management and 21Shares to list a spot bitcoin exchange-traded fund (ETF).
The SEC said the Cboe BZX Exchange – on which the ETF would be listed – had failed to "demonstrate that its proposal is consistent with the requirements" surrounding prevention of fraud and other malevolent practices.
The U.S. markets regular has rejected a score of applications for an ETF investing directly in bitcoin, but has approved a number of funds tracking the BTC futures market.
One of the firms to have its bid rejected, Grayscale Investments (owned by CoinDesk parent Digital Currency Group) has chosen to take legal action over the SEC's decision, with oral arguments set to commence on March 7.
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