SEC shoots down spot bitcoin ETF proposals from NYDIG, Global X

The Securities and Exchange Commission has shot down two spot bitcoin exchange-traded fund proposals, continuing a trend of rejections from the US securities market regulator. 

The rejections were for proposals submitted by NYDIG and Global X. 

As has been the case with rejections for other spot bitcoin ETF proposals, the regulatory filings cited a lack of surveillance-sharing agreements and the perceived inability to curb fraud or manipulative practices in the market.

“This order disapproves the proposed rule change,” the SEC wrote in its NYDIG-related order. “The Commission concludes that NYSE Arca has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), and in particular, the requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest.'”

Last fall, the SEC moved to allow the listing of bitcoin futures ETFs for the first time. Recent months have also seen the proposal of ETF products tied to the stocks of crypto-related companies, including publicly traded miners.