SEC Rejects Ark 21Shares Spot Bitcoin ETF for Second Time

The U.S. markets regular has rejected a score of ETF applications for products that invest directly in bitcoin while approving a number of funds tracking the BTC futures market.

AccessTimeIconJan 26, 2023 at 5:11 p.m. UTC
Updated Jan 26, 2023 at 9:23 p.m. UTC

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.

An earlier attempt by Cathie Wood's Ark Investment Management and Swiss investment products provider 21Shares to list a spot bitcoin ETF in the U.S. was rejected in April. The two firms decided to have another go, filing a new application in May.

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.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.