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SEC Spurns Crypto Industry Again, Denying Two Spot-Bitcoin ETFs

  • Agency passes on a pair of spot ETF filings ahead of Christmas
  • Valkyrie and Kryptoin’s physically-backed ETF proposals denied

Regulators rejected a pair of proposals to offer physically-backed Bitcoin exchange-traded funds, handing crypto enthusiasts a proverbial bag of coal ahead of the Christmas holiday. 

The U.S. Securities and Exchange Commission said on Wednesday that the proposals from Valkyrie Investments and Kryptoin failed to meet requirements to prevent fraudulent and manipulative practices that are needed to protect investors. It allowed futures-backed Bitcoin ETFs to be offered in October. The earlier-than-expected decision from the SEC could suggest a 2022 approval for a pure Bitcoin fund may not be in the cards either.